Stocks rise on tame inflation outlook, dollar eases

Stocks rise on tame inflation outlook, dollar eases

Stocks rise on tame inflation outlook, dollar eases

A late night vote in Parliament ruled out a potentially disorderly "no-deal" Brexit under any circumstances.

The Commerce Department later reported new orders for key USA -made capital goods rose by the most in six months in January and shipments increased.

Boeing gained for the first time since Sunday's crash of a 737 MAX 8 jet in Ethiopia. The Stoxx Europe 600 Index climbed as most sectors advanced, with shares in the United Kingdom also rising after a night of voting that saw the British government once again defeated in Parliament. It jumped 2.1 percent for its best one-day percentage gain since April 2017 and was last at $1.3315.

"Earnings estimate revisions continue to come downward, but that does not seem for the moment to be fazing equity investors", he said.

A Fed on hold for hiking rates suggests concern about economic growth, which can be seen in a narrowing gap between 10-year and two-year U.S. Treasury yields, Geraghty said. An inverted yield curve historically has been an indicator of recession.

US stocks rose on Wednesday, led by gains in healthcare shares, and Boeing shares edged upward even as the United States grounded the company's 737 MAX jets after a fatal crash in Ethiopia.

On Wall Street, the Dow Jones Industrial Average rose 155.29 points, or 0.61 percent, to 25,709.95. This is the latest sign of benign inflation, supporting the Federal Reserve's wait-and-see approach to further interest rate hikes this year.The euro was up 0.41 percent at $1.1332. The pound was last up 1.39 percent at $1.326 after a roller-coaster ride this week in which its price has moved within a range of 3-1/2 cents against the dollar. The U.S. dollar index, which measures the greenback against a basket of six rival currencies, was 0.43 percent lower at 96.515.

"I expect equity markets to remain volatile and to tread water, and there is still too much risk in risk assets, and ultimately I think bond yields will head lower but this is a process that unfolds, it's not a sudden event", Suzanne Hutchins, a senior portfolio manager at Newton Investment Management in London, said in an interview at Bloomberg's NY headquarters.

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The dollar fell and 10-year Treasury yields turned negative after core inflation cooled.

"After yesterday's CPI data, yields fell. So some of these are just rebound after that", said Stan Shipley, fixed income strategist at Evercore ISI in NY.

Wall Street was buoyant overnight after US producer prices barely edged higher in February, the latest sign that inflation remained tame and affirming expectations the Federal Reserve would maintain a "patient" approach to future tightening. The price of oil, one of Canada's major exports, rose as US crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world's top producer was revised lower.

Alongside Brexit developments, investors have a slew of economic data to digest this week.

Gold sank 0.8 percent to $1,298.54 an ounce, the biggest dip in nearly two weeks.

Elsewhere, oil pushed above US$58 a barrel in NY, boosted by a decline in USA crude and fuel stockpiles, adding to evidence of a tightening market.

This story has not been edited by Firstpost staff and is generated by auto-feed.

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