U.S. dollar rises on weaker euro, Fed policy; stocks gain
By Hilary Russ NEW YORK (Reuters) - The U.S.
By Hilary Russ
NEW YORK (Reuters) - The U.S. dollar rose held near a one-week high against a basket of major currencies on Thursday following a hike in U.S. interest rates, while a robust economy and surging shares of Apple Inc
The Federal Reserve on Wednesday raised rates for the third time this year, indicating its confidence in the U.S. economy.
That sentiment carried the dollar higher into a second day and dented the euro, which was further pressured by worries about Italy's budget.
"The Fed is moving faster than most central banks and that's dollar-supportive," said Erik Nelson, currency strategist, at Wells Fargo Securities in New York.
The dollar index <.DXY> rose 0.75 percent, with the euro
The greenback also hit a two-week peak against the Swiss franc
The Dow Jones Industrial Average <.DJI> rose 93 points, or 0.35 percent, to 26,478.28, the S&P 500 <.SPX> gained 12.64 points, or 0.43 percent, to 2,918.61 and the Nasdaq Composite <.IXIC> added 62.23 points, or 0.78 percent, to 8,052.60.
Apple rose 2.5 percent at one point, the biggest boost to the three main indexes after JP Morgan started coverage of the stock with an "overweight" rating.
Amazon rose 1.8 percent after brokerage Stifel talked up its businesses.
MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.07 percent.
In Egypt, the central bank left its main interest rate unchanged on Thursday, saying the decision was consistent with achieving inflation targets.
Reports that Italy's long-awaited budget was facing delay initially dented European shares, which then recovered. The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.44 percent.
Italy's main Milan bourse slumped as much as 2 percent <.FTMIB>, and was last down 0.6 percent, with the country's big banks sinking even more as the country's borrowing costs hit a three-week high in the government bond markets.
Rome confirmed that a cabinet meeting over budget targets was still planned for later, dismissing an earlier report in the Corriere della Sera newspaper that it could be delayed.
Still, Italy's economic ministry was forced to deny that its chief Giovanni Tria, an academic who does not belong to any one party, had threatened to resign.
"It is very fluid and it is changing by the minute it seems," head of EMEA macro strategy at State Street Tim Graf said.
"Even if things get resolved positively today, Italy is not a situation that is going to go away," he added, pointing to the growing popularity of the country's fractious anti-establishment coalition government.
Japan's Nikkei <.N225> briefly touched an eight-month high as signs that the United States may not impose further tariffs on Japanese automotive products for now lifted carmakers, though the index eventually ended down nearly 1 percent.[.T]
Benchmark 10-year notes
Oil edged higher, driven by the prospect of a shortfall in global supply once U.S. sanctions against major crude exporter Iran come into force in just five weeks' time.
U.S. crude oil futures
(Reporting by Hilary Russ; Additional reporting by Marc Jones, Amanda Cooper and Peter Hobson in London, Amy Caren Daniel in Bengaluru, Aidan Lewis in Cairo; Renita D. Young and Gertrude Chavez-Dreyfuss in New York; Editing by Bernadette Baum and Lisa Shumaker)
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.