Wall Street opens modestly higher led by financials

Rising US Treasury bond yields boost financial shares on Thursday.
Defensive sectors stay in negative territory in early trade.
Energy shares extend rally supported by recovering crude oil prices.

Eren Sengezer FXStreet

Major equity indexes in the United States started the day in the positive territory on Thursday. As of writing, the Dow Jones Industrial Average was up 0.57% on the day while the S&P 500 and the Nasdaq Composite were adding 0.43% and 0.33%, respectively.

Today's upbeat PMI data from Germany eased concerns over a deeper slowdown in the economy and helped the market sentiment improve. Moreover, hopes of the EU making concessions on the Irish backstop and allowing the UK to leave with a deal provided an additional boost to the risk-appetite.

The 10-year US Treasury bond yield rose sharply on these developments and the rate-sensitive S&P 500 Financials Index is now up 0.92% on the day to lead the winners. Additionally, crude oil prices edged higher amid the risk-on atmosphere and lifted the S&P 500 Energy Index, which was last gaining 0.6% on the day, higher in the early trade.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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