* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh
* Reuters Live Markets blog on European and UK stock markets: LIVE/
By Herbert Lash
NEW YORK, Aug 4 (Reuters) - Gold surged to a record high on Tuesday after Democrats and the White House appeared closer to agreement on new stimulus to help the coronavirus-hit economy and a broad swath of Wall Street edged up as investors awaited more aid from Washington.
Oil prices also rose on the prospect of a new package but Treasury yields slid to their lowest since March on safe-haven demand and concerns about the ultimate cost of a stimulus bill.
Gold surged to the psychologically important level of $2,000 an ounce after the U.S. Senate's top Democrat said a new round of coronavirus relief was moving in the right direction, though the two sides remain far apart. gold prices XAU= rose $18.5543, or 0.94%, to $1,995.25 an ounce. Earlier, spot gold was bid at $2,000.11 an ounce.
Bullion has soared more than 30% so far this year, supported by lower interest rates and safe-haven buying on concerns Federal Reserve policy and government stimulus are debasing the currency.
The bond market, which is at loggerheads with the equity markets over stimulus and its role in the economy, is skeptical about the prospects of a rebound in economic growth in the third quarter.
"There is a concern about how much the stimulus package will help the economy, and its cost over time," said Kevin Giddis, chief fixed income strategist at Raymond James.
The 10-year U.S. Treasury notes US10YT=RR slid 3.8 basis points to yield 0.5249% after earlier trading as low as 0.513%.
MSCI's benchmark for global equity markets .MIWD00000PUS rose 0.47% after earlier hitting a five-month high, less than 4% from its all-time peak in February. The index was lifted overnight when stocks rallied in Asia on relatively strong manufacturing data from around the world reported on Monday.
Wall Street shrugged off new upbeat data after a report showed new orders for U.S.-made goods increased more than expected in June, suggesting the manufacturing sector was beginning to claw its way out of the pandemic's deep pit.
The Commerce Department said factory orders rose 6.2%, boosted by a surge in demand for motor vehicles. Despite the second straight monthly gain, orders remained well below their level in February before lockdowns sapped demand.
Shares in Europe slid. The broad pan-regional FTSEurofirst 300 index .FTEU3 closed down 0.10% at 1,412.42 after a strong rally on manufacturing data on Monday.
Disappointing results from Diageo Plc DGE.L , the world's largest spirits maker, and German drugs and pesticides group Bayer BAYGn.DE , took the shine off growth-linked cyclical stocks. BP.L cut its dividend for the first time in a decade after a record $6.7 billion second-quarter loss, when the pandemic hammered fuel demand. Its shares rose 6.5% after BP unveiled a plan to reduce its oil and gas output by 40% and boost investments in renewable energy. prices edged higher, with Brent on track for a five-month high, on hopes for more stimulus and signs America may be making progress on controlling the coronavirus spread.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Emerging markets
http://tmsnrt.rs/2ihRugV Asset performance since coronavirus outbreak
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.