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Bloomberg
The dollar continued to fall on Thursday after minutes from the most recent Federal Reserve meeting showed officials were confident they could raise rates gradually without triggering short-term inflation. Oil rose to a seven-week high and stocks were up slightly at the open.
The S&P 500 Index rose .10 and Dow Jones Industrial Average was up .12 percent at 9:58 a.m. in New York. Meanwhile, US bonds moved higher in lockstep with European debt. French bonds advanced after a pact between independent presidential candidate Emmanuel Macron and centrist Francois Bayrou helped ease fears the country could elect a leader who favors leaving the European Union. Crude climbed back above $54 after an industry report showed US stockpiles fell. Official government data will be out today.
The rally that brought the value of global equities to more than $70 trillion and the MSCI All-Country World Index to a record appears to have lost momentum as money managers grapple with political uncertainty and the Fed’s schedule for lifting borrowing costs. Minutes of the latest meeting showed officials confident they can raise interest rates gradually as there’s little threat inflation will suddenly accelerate. They wrestled with uncertainty on issues ranging from the Trump administration’s fiscal stimulus plans to the headwinds a rising dollar may pose.
What traders are likely to be watching out for:
Trump was expected to meet on Thursday with corporate chief executives to discuss job creation and his plans to craft new tax and trade policies. Billionaire Warren Buffett releases his annual letter to shareholders with Berkshire Hathaway Inc.’s earnings over the weekend. Legislators in the UK will consider changes to the Brexit bill next Monday and Wednesday that may address the rights of EU citizens in Britain and give parliament a binding vote on the final deal.
Here are the main moves in markets:
Stocks
S&P 500 Index added 0.10 percent as of 9:58 a.m in New York. The Stoxx Europe 600 index rose 0.13 percent.
Currencies
The Bloomberg Dollar Spot Index fell 0.3 percent, extending Wednesday’s losses. The euro advanced 0.2 percent to $1.0581.
Bonds
The yield on 10-year Treasury notes dropped three basis points to 2.39 percent. French bonds rallied as the yield on bonds due in a decade fell five basis points to 0.97 percent. German benchmark yields retreated three basis points to 0.25 percent.
Commodities
West Texas Intermediate gained 2 percent to $54.65 a barrel; Brent climbed 1 percent to $6.95. Gold added 0.9 percent to $1,248.50 an ounce as the outlook for higher US interest rates and a stronger dollar offset the effect of investors seeking a haven from political risk in the US and Europe. US natural gas advanced 1.4 percent to $2.631 per million British thermal units, extending its rebound off a six-month low before a government inventory report due Thursday.