Dollar rises on hawkish comments; stocks end up
By Rodrigo Campos NEW YORK (Reuters) - The U.S. dollar continued to rise on Tuesday after hawkish remarks from a Federal Reserve speaker, while stocks ended higher with a boost from Amazon even as curbs to control the spread of COVID-19 raised the fear of a second wave of lockdowns
By Rodrigo Campos
NEW YORK (Reuters) - The U.S. dollar continued to rise on Tuesday after hawkish remarks from a Federal Reserve speaker, while stocks ended higher with a boost from Amazon even as curbs to control the spread of COVID-19 raised the fear of a second wave of lockdowns.
Crude rose after a hard fall on Monday, while stocks in Europe and Wall Street more than offset the losses elsewhere. The dollar index <=USD> was having its strongest two-day run since April.
Sterling took a hit after British Prime Minister Boris Johnson told Britons to go back to working from home, along with new curbs on pubs, bars and restaurants that he said could be in place for as long as six months without some form of vaccine.
"As we all know, the virus doesn't live in a vacuum and what you see in one country or region will affect other places. Economically it could have an effect," said Minh Trang, senior FX trader at Silicon Valley Bank.
The dollar also got a lift after Chicago Fed President Charles Evans mentioned the prospect of raising interest rates.
"All we've been hearing from the Fed for the last few months is we're not going to hike rates at any point in the foreseeable future. Then Evans came in and challenged that narrative, so the market got caught off-guard," said Erik Nelson, macro strategist at Wells Fargo Securities in New York.
The dollar index <=USD> rose 0.403%, with the euro
The Japanese yen
The 5.7% lift from Amazon
The Dow Jones Industrial Average <.DJI> rose 140.48 points, or 0.52%, to 27,288.18, the S&P 500 <.SPX> gained 34.51 points, or 1.05%, to 3,315.57 and the Nasdaq Composite <.IXIC> added 184.84 points, or 1.71%, to 10,963.64.
The pan-European STOXX 600 index <.STOXX> rose 0.20% and MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.43%.
Emerging market stocks lost 0.69%. MSCI's broadest index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS> closed 1.01% lower.
U.S. Treasury debt yields edged lower most of the session but ended little changed as stocks rose, with benchmark 10-year notes
Oil prices rose as analysts took the view that renewed lockdown restrictions in Europe would have only a limited impact on fuel demand, partly reversing a steep drop in prices the previous day.
(Reporting by Rodrigo Campos; additional reporting by Sinéad Carew, Laura Sanicola, Gertrude Chavez-Dreyfuss, Herb Lash and Chuck Mikolajczak; editing by Chris Reese and Jonathan Oatis)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.