Dollar halts slide, US stocks soar ahead of Fed’s meeting minutes

Bloomberg

The dollar snapped its longest losing streak since September and US stocks climbed to record highs for a second consecutive day ahead of the release of minutes from
the Federal Reserve’s December policy meeting.
The Standard & Poor’s 500 Index rose past 2,700 for the first time, while the Nasdaq Composite Index also reached a record as a report showed US manufacturing expanded in December at the fastest pace in three months.
European stocks rose following a positive session in Asia and bonds gained as the region’s
new investment regulations finally took effect. Japanese markets remained closed.
Emerging-market shares also gained for a second session. European bonds rose after strong investor interest in an Irish debt sale, and the euro retreated for the first time in six days.
Investors are expected to trade cautiously today, at least in
Europe, as the biggest shake-up to market regulations in a decade begins. The MiFID II rules are one of the most seismic regulatory
shifts in history, affecting everything from investment research to trade execution.
Elsewhere, West Texas oil rose to the highest in nearly three years ahead of US government stockpile data this week and as unrest continues in Iran. Gold traded a near four-month high.
MiFID II, the biggest change to European investment industry rules in a decade, takes effect. The Federal Reserve’s December meeting minutes are expected.
The S&P 500 Index climbed 0.4 percent to a record as of 10:51 am in New York, while the Dow Jones Industrial Average gained 0.2 percent and the NASDAQ Composite Index rose 0.6 percent to another all-time high. The Stoxx Europe 600 Index climbed 0.5 percent. The UK’s FTSE 100 Index rose 0.4 percent. Germany’s DAX Index rose 0.9 percent. The MSCI Asia Pacific Index gained 0.2 percent to the highest on record.
The MSCI Emerging Market Index increased 0.5 percent.
The Bloomberg Dollar Spot Index rose 0.2 percent. The euro dropped 0.3 percent, dropping from the strongest level in about three years. The British pound fell 0.6 percent. The Japanese yen weakened 0.1 percent to 112.41 per dollar.
The yield on 10-year Treasuries fell one basis point to 2.45 percent. Germany’s 10-year yield dropped two basis points to 0.45 percent. Britain’s 10-year yield decreased six basis points to 1.22 percent.
West Texas Intermediate crude rose $1.04 to $61.41 a barrel. Gold was little changed at $1,317.78 an ounce, close to a four-month high. Copper dipped 1.1 percent to $3.24 a pound.