Stocks Rise, Dollar Slips as Weekend Risks Fade – 17 April, 2017
U.S. stocks rose the most in six weeks, while the dollar weakened as geopolitical threats eased and a fresh set of American economic data damped the odds for a Federal Reserve rate hike in June.
All 11 groups in the S&P 500 Index advanced, while the Dow Jones Industrial Average added almost 200 points in light trading. Bloomberg’s dollar index pared losses after Treasury Secretary Steven Mnuchin told the Financial Times the greenback’s strength is “a good thing.” The yield on 10-year Treasuries edged higher from a November low. Gold erased gains. Turkey’s lira jumped after a vote expanded powers for the president. Copper climbed after China’s economic growth accelerated.
Investors turned less cautious as the new week dawned without any major international incidents that damped the prospects for global growth. The dollar pared a decline sparked by the U.S. decision not to label any countries currency manipulators, while haven demand eased after North Korea’s failed ballistic missile launch and Turkey’s referendum. Faster growth in China boosted optimism about the strength of the global economy, while readings on American housing and New York manufacturing lowered the odds for higher interest rates.
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Here’s what investors are watching this week:
- Australia, New Zealand, Hong Kong and most major European markets won’t reopen until Tuesday.
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The annual spring meetings of the World Bank Group and the International Monetary Fund take place in Washington.
- Companies reporting this week include Bank of America Corp., Goldman Sachs Group Inc., International Business Machines Corp., Heineken NV and Unilever.
Here are the main moves in markets:
Stocks
- The S&P 500 rose 0.9 percent to 2,349.01 at 4 p.m. in New York. The gauge lost 1.1 percent for the holiday-shortened week.
- Trading in S&P 500 shares was 16 percent below the 30-day average.
- Netflix Inc. lost 1.5 percent as of 4:24 p.m. after reporting results.
- The MSCI Emerging Market Index added 0.3 percent.
- European markets were closed.
Currencies
- The Bloomberg Dollar Spot Index fell 0.2 percent to the lowest since March 27.
- The euro rose 0.2 percent to $1.064.
- The British pound strengthened 0.3 percent to $1.2564.
- The Turkish lira rose 1.2 percent to 3.6966 per dollar.
Bonds
- The yield on 10-year Treasuries rose one basis point to 2.25 percent, climbing from the lowest in about five months.
- China’s holdings of U.S. Treasuries rose in February, while Japan’s holdings reached the highest level since October.
- European sovereign debt markets were closed.
Commodities
- Gold futures touched a five-month high before turning lower. Bullion slipped 0.3 percent to $1,284.60 an ounce to halt a three-day advance.
- Copper futures climbed 1 percent in New York, boosted by data showing China’s gross domestic product rose 6.9 percent in the first quarter. The country is the world’s biggest consumer of the metal.
- West Texas Intermediate crude fell 0.1 percent to settle at $52.65 a barrel, the lowest in more than a week. The U.S. continued to ramp up drilling, stoking concerns the nation’s surge in output this year will counter OPEC-led efforts to cut a global supply surplus.
- Iron ore fell 2 percent to 500.5 yuan per metric ton, the lowest in more than 14 weeks.
Source: Bloomberg