US stocks rise despite New York City explosion; oil gains

Bloomberg

US stocks were higher after an explosion rocked midtown Manhattan. The dollar fell and Treasuries rose. All major equity gauges were higher, led by gains in technology and energy shares, as markets digested news of the pipe bomb blast on Monday morning in the Times Square subway station on 42nd St. that injured four people, including the suspect. Oil gained and gold slid.
In Europe, stocks struggled for direction that will be heavily influenced by central bank decisions. Major European bonds rose and the euro climbed. The pound slipped, as some of the promises made to clinch a breakthrough Brexit deal last week started to fray. In Asia, the Nikkei 225 reclaimed a 26-year high.
Monetary policy takes centre stage this week, with the Fed expected to raise interest rates at its meeting on Wednesday and the European Central Bank set to reveal details of plans to taper asset purchases on Thursday. The Bank of England and Swiss National Bank also meet. With the global economy heading into its strongest period since 2011, Wall Street economists are bracing investors for the biggest tightening in more than a decade.
“We have a pretty busy week here,” Ernie Cecilia, the chief investment officer at Bryn Mawr Trust Co., said. “I don’t want to dismiss what’s going on in New York, that’s not my point, but it looks like until we know what’s involved, it looks like I’ll call it under control, whatever that might mean. We have a number of things this week. Further work on tax reform from a conference perspective and there will probably be issues that get leaked out as they try to reconcile the Senate and House bills.”
Oil rose to more than $57 a barrel as US drillers expanded the crude rig count to a three-month high. Bitcoin futures began trading in Chicago and were at $17,800 as of 11:43 am in New York.
Fed policy makers on Wednesday are projected to raise the target range for their benchmark interest rate against a backdrop of continuing robust US economic conditions, a vibrant labour market and forecasts for inflation to pick up. The European Central Bank, the Bank of England and the Swiss National Bank set monetary policy at their respective meetings on Thursday.
The S&P 500 was up 0.2 percent at 10:48 am in New York, while the Nasdaq 100 Index added 0.4 percent. The Stoxx Europe 600 Index fell 0.1 percent. The MSCI Asia Pacific Index jumped 0.8 percent to the highest in more than a week. The MSCI Emerging Market Index increased 0.9 percent.
The Bloomberg Dollar Spot Index declined 0.1 percent. The euro climbed 0.2 percent to $1.1799. The British pound dipped 0.3 percent to $1.3351, the weakest in almost two weeks. The Japanese yen advanced 0.1 percent to 113.36 per dollar. The yield on 10-year Treasuries declined one basis point to 2.3617 percent. Germany’s 10-year yield fell two basis points to 0.288 percent.