World stocks edge higher and the dollar holds gains after Fed chair’s remarks
US Fed chairman Jerome Powell says, ‘several years’ of strong jobs and low inflation lie ahead’; the S&P 500 and MSCI global stock gauges edge higher
17 July 2018 - 18:29
byLewis Krauskopf
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New York — The dollar held gains on Tuesday against a basket of major currencies following an upbeat economic assessment from the head of the US Federal Reserve, while world stocks edged higher, with Wall Street erasing earlier losses.
In written testimony for the Senate banking committee, Fed chairman Jerome Powell said the economy was on the cusp of "several years" of the job market remaining strong and inflation remaining near the Fed’s 2% target.
Asset moves were generally modest following Powell’s prepared remarks, in which he signalled he believed the economy was doing well and that an era of stable growth may continue, provided the Fed gets its policy decisions right.
The US dollar pared gains against a basket of currencies immediately following the release of the testimony, but then bounced back.
"I suspect the market was pricing itself for a potential hawkish surprise, which it didn’t get," said Richard Franulovich, head of FX strategy at Westpac Banking in New York. "But, I mean, when you parse the comments, there’s nothing dovish in there. Far from it. The conditions are still solid. He’s pretty upbeat on the outlook."
The Dow Jones Industrial Average rose 8.08 points, or 0.03%, to 25,072.44; the S&P 500 gained 3.87 points, or 0.14%, to 2,802.3; and the Nasdaq Composite added 7.87 points, or 0.1%, to 7,813.59.
Netflix shares tumbled 8.6% after the company’s subscriber growth fell short of Wall Street expectations.
MSCI’s gauge of stocks across the globe gained 0.01%, while the pan-European FTSEurofirst 300 index rose 0.17%. The dollar index, tracking it against a basket of major currencies, rose 0.28%, with the euro down 0.17% to $1.1689.
Benchmark 10-year notes last fell 2/32 in price to yield 2.8619%, from 2.856% late on Monday.
Oil steadied after steep declines on Monday, including a three-month low for Brent. Worries over supply disruptions eased and the focus moved to increasing production and potential damage to global growth from the US-China trade dispute. US crude fell 0.96% to $67.41 a barrel and Brent was last at $72.03, up 0.26% on the day.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
World stocks edge higher and the dollar holds gains after Fed chair’s remarks
US Fed chairman Jerome Powell says, ‘several years’ of strong jobs and low inflation lie ahead’; the S&P 500 and MSCI global stock gauges edge higher
New York — The dollar held gains on Tuesday against a basket of major currencies following an upbeat economic assessment from the head of the US Federal Reserve, while world stocks edged higher, with Wall Street erasing earlier losses.
In written testimony for the Senate banking committee, Fed chairman Jerome Powell said the economy was on the cusp of "several years" of the job market remaining strong and inflation remaining near the Fed’s 2% target.
Asset moves were generally modest following Powell’s prepared remarks, in which he signalled he believed the economy was doing well and that an era of stable growth may continue, provided the Fed gets its policy decisions right.
The US dollar pared gains against a basket of currencies immediately following the release of the testimony, but then bounced back.
"I suspect the market was pricing itself for a potential hawkish surprise, which it didn’t get," said Richard Franulovich, head of FX strategy at Westpac Banking in New York. "But, I mean, when you parse the comments, there’s nothing dovish in there. Far from it. The conditions are still solid. He’s pretty upbeat on the outlook."
The Dow Jones Industrial Average rose 8.08 points, or 0.03%, to 25,072.44; the S&P 500 gained 3.87 points, or 0.14%, to 2,802.3; and the Nasdaq Composite added 7.87 points, or 0.1%, to 7,813.59.
Netflix shares tumbled 8.6% after the company’s subscriber growth fell short of Wall Street expectations.
MSCI’s gauge of stocks across the globe gained 0.01%, while the pan-European FTSEurofirst 300 index rose 0.17%. The dollar index, tracking it against a basket of major currencies, rose 0.28%, with the euro down 0.17% to $1.1689.
Benchmark 10-year notes last fell 2/32 in price to yield 2.8619%, from 2.856% late on Monday.
Oil steadied after steep declines on Monday, including a three-month low for Brent. Worries over supply disruptions eased and the focus moved to increasing production and potential damage to global growth from the US-China trade dispute. US crude fell 0.96% to $67.41 a barrel and Brent was last at $72.03, up 0.26% on the day.
Reuters
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