Global Markets: Stocks rise slightly but dollar eases in wake of U.S. GDP data

By Caroline Valetkevitch NEW YORK (Reuters) - Global stock markets edged higher on Friday as data showing U.S. economic growth accelerated in the first quarter offset corporate earnings disappointments, while the dollar fell against a basket of currencies.

Reuters April 27, 2019 01:05:36 IST
Global Markets: Stocks rise slightly but dollar eases in wake of U.S. GDP data

Global Markets Stocks rise slightly but dollar eases in wake of US GDP data

By Caroline Valetkevitch

NEW YORK (Reuters) - Global stock markets edged higher on Friday as data showing U.S. economic growth accelerated in the first quarter offset corporate earnings disappointments, while the dollar fell against a basket of currencies.

The Commerce Department said U.S. gross domestic product increased at a 3.2% annualised rate. The jump in growth was driven by a smaller trade deficit and the largest accumulation of unsold merchandise since 2015, temporary factors that are likely to reverse in the coming quarters.

The dollar index fell 0.24%. The index, which hit a 23-month high earlier in the session, is up for the week.

"Overall, U.S. growth last quarter was outstanding. But the soft inflation components were enough to spur some profit-taking in the buck's winning week," said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

Also limiting gains in stocks were tech shares, with Intel Corp down sharply after it cut its full-year revenue forecast and missed quarterly sales estimate for its key data centre business. Exxon Mobil and Chevron also were lower following results Friday.

The Dow Jones Industrial Average rose 17.32 points, or 0.07%, to 26,479.4, the S&P 500 gained 5.22 points, or 0.18%, to 2,931.39 and the Nasdaq Composite added 2.39 points, or 0.03%, to 8,121.07.

The pan-European STOXX 600 index rose 0.22% and MSCI's gauge of stocks across the globe gained 0.18%.

The GDP release sets the stage for a Federal Reserve interest rate decision next week, when investors will try to anticipate how the U.S. central bank will react to mostly resilient indicators of late.

The rebound has not been mirrored in inflation, which remains subdued across much of the developed world, prompting a host of central banks to turn dovish.

Just this week central banks in Sweden and Canada backed off plans to tighten, while the Bank of Japan tried to dispel doubts about its accommodative stance by pledging to keep rates at super-low levels for at least one more year.

The Fed next week is expected to reaffirm its patient stance. A Reuters poll of analysts published on Thursday found most believed the Fed was done with tightening altogether.

Benchmark 10-year U.S. Treasury notes were last up 7/32 in price to yield 2.509%, from 2.534% late on Thursday.

Oil prices sank after U.S. President Donald Trump again pressured the Organisation of the Petroleum Exporting Countries to raise crude production to ease gasoline prices.

U.S. crude oil futures fell 2.9% to settle at $63.30 a barrel. Brent crude futures settled down nearly 3% at $72.15.

(Additional reporting by Sruthi Shankar and Amy Caren Daniel in Bengaluru, Saqib Iqbal Ahmed and Laila Kearney in New York, Ritvik Carvalho in London and Wayne Cole and Swati Pandey in Sydney; Editing by Alistair Bell and James Dalgleish)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash
Business

Airline easyJet's first-half loss widens as COVID-19 hurts travel, seeks cash

(Reuters) - Budget airline easyJet on Wednesday reported a bigger loss for the first half as it took a 160-million-pound hit ($199 million) from failed fuel hedging as the COVID-19 pandemic brought global air travel to a virtual standstill. The London-listed company reported a pretax loss of 353 million pounds for the six months ended March 31 from a loss of 272 million pounds last year. Revenue rose 1.6%, though easyJet took a hit from strikes in France, and storms Ciara and Dennis.

Bayer settles Roundup cancer lawsuits for up to $10.9 billion
Business

Bayer settles Roundup cancer lawsuits for up to $10.9 billion

FRANKFURT (Reuters) - Bayer AG on Wednesday said it agreed to settle U.S.

Sudan to establish trade financing fund in face of forex shortage
Business

Sudan to establish trade financing fund in face of forex shortage

KHARTOUM (Reuters) - Sudan will create a trade financing fund with a portfolio of $2 billion to aid the import and export of key commodities such as wheat, the Finance Ministry said, as the supply of foreign currency in circulation dwindles. Sudan's economy is at risk of freefall, hammered by an inflation rate of more than 100% and frequent shortages of bread, fuel and medicine. The country's currency has also fallen to a record low of 150 Sudanese pounds to the dollar on the black market compared with 55 at the official rate