World stocks climb to month peak, U.S. dollar hits three-week high

By Lewis Krauskopf NEW YORK (Reuters) - Stocks on major world markets climbed to a one-month high on Wednesday after a raft of strong corporate earnings, while the U.S. dollar hit a three-week high against major currencies. MSCI's gauge of stocks across the globe gained 0.17 percent and touched its highest point in a month

Reuters July 19, 2018 03:05:21 IST
World stocks climb to month peak, U.S. dollar hits three-week high

World stocks climb to month peak US dollar hits threeweek high

By Lewis Krauskopf

NEW YORK (Reuters) - Stocks on major world markets climbed to a one-month high on Wednesday after a raft of strong corporate earnings, while the U.S. dollar hit a three-week high against major currencies.

MSCI's gauge of stocks across the globe <.MIWD00000PUS> gained 0.17 percent and touched its highest point in a month.

Stock markets were also supported by Federal Reserve chairman Jerome Powell reiterating that the U.S. economy was healthy, even though he warned that rising world protectionism would over time pose a risk to the global economic expansion.

"He's been constructive on the economy and downplayed the risk of a recession," said Jonathan Cohn, interest rate strategist with Credit Suisse in New York.

On Wall Street, the Dow Jones Industrial Average <.DJI> rose 79.4 points, or 0.32 percent, to 25,199.29, the S&P 500 <.SPX> gained 6.07 points, or 0.22 percent, to 2,815.62 and the Nasdaq Composite <.IXIC> dropped 0.67 points, or 0.01 percent, to 7,854.44.

The S&P 500 hit a more than five-month high.

Shares of Morgan Stanley , airline United Continental and railroad CSX all jumped after the companies reported better-than-expected results.

Amazon.com Inc's stock market value reached $900 billion for the first time, though the shares later reversed course to trade slightly lower.

The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.60 percent, hitting a one-month high. The region's shares were supported by currency weakness and a rally in technology stocks following well-received earnings updates, including from Sweden's Ericsson .

In the foreign exchange market, the U.S. dollar index <.DXY>, which measures the greenback against a basket of six currencies, rose 0.17 percent, to 95.104 after rising as high 95.407. The euro was down 0.16 percent to $1.164.

Federal Reserve chairman Powell's comments to Congress about the health of the U.S. economy reinforced the view that interest rates would continue to rise supporting demand for the dollar.

Traders saw his comments as signifying that authorities were comfortable with the greenback's near 6 percent rise against its rivals in the last three months.

Benchmark U.S. 10-year notes last fell 4/32 in price to yield 2.8766 percent, from 2.862 percent late on Tuesday. The U.S. yield curve remained near its flattest in nearly 11 years.

Oil prices rose 1.0 percent after U.S. government data indicated bullish demand for gasoline and distillates, which overshadowed a surprise build in U.S. crude inventories and U.S. crude oil production's hitting 11 million barrels per day for the first time.

U.S. crude settled up 1 percent at $68.76 per barrel, and Brent settled at $72.90, up 1 percent.

Spot gold fell to a one-year low as the U.S. dollar rose before settling at $1,227.81 an ounce.

(Reporting by Lewis Krauskopf, additional reporting by Richard Leong in New York; editing by Clive McKeef)

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

Oil rises 2% as OPEC complies with production cuts
Business

Oil rises 2% as OPEC complies with production cuts

By Jessica Resnick-Ault NEW YORK (Reuters) - Oil prices strengthened on Wednesday, as OPEC and its allies were seen complying with a pact to cut oil supply in September, even as concerns loomed that recovery in fuel demand will be stalled by soaring global coronavirus cases. Early in the day crude was boosted by a bullish stock market. Even as equities whipsawed on pandemic worries, oil stayed higher, buoyed by expectations that OPEC could staunch a supply glut

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000
Business

Tesla's back-to-back price cuts bring sticker on U.S. Model S below $70,000

By Tina Bellon and C Nivedita (Reuters) - Tesla Inc will further cut the price of its Model S "Long Range" sedan in the United States to $69,420, the electric carmaker's chief executive, Elon Musk, announced in a tweet https://bit.ly/2H0JCP0 on Wednesday. The anticipated drop marks the second time this week Tesla has cut the price for the high-end sedan, following a 4% cut of the Model S's price in the United States on Tuesday to $71,990.

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen
World

Trump cites teenaged son's bout with coronavirus in calling for schools to reopen

By Jeff Mason DES MOINES, Iowa (Reuters) - Under siege over his handling of the novel coronavirus pandemic, President Donald Trump on Wednesday cited what he said was his son's mild bout of the virus as a reason why American schools should reopen as soon as possible. Trump made the comment about his son, Barron, as the president swept into Iowa on a mission to shore up support in battleground states that he won in 2016 but is in danger of losing to Democrat Joe Biden barely three weeks before the election. First lady Melania Trump announced in a statement earlier in the day that the virus that struck both her and her husband had also infected their 14-year-old son