Global stocks rise; dollar up


FE Team | Published: January 19, 2019 12:20:09 | Updated: January 26, 2019 15:05:44


File Photo (Collected)

Global stocks rose on Friday and the dollar was on track for its first positive week this year, boosted by optimism that the trade conflict between the United States and China may come to an end.

Adding to strength in equities and supporting US Treasury yields was data that showed US manufacturing output increased the most in 10 months in December.

Wall Street was set for a fourth week of gains, with foreign trade-sensitive industrials up 1.6 per cent and leading sector gains for the S&P 500.

The Philadelphia SE semiconductor index also rose, while Germany’s exporter-heavy DAX was up 2.3 per cent, reports Reuters.

The trade hopes followed a report on Thursday that US Treasury Secretary Steven Mnuchin was considering lifting some or all tariffs imposed on Chinese imports.

The Treasury denied Mnuchin had made any such recommendation, said the report.

The Dow Jones Industrial Average rose 242.89 points, or 1 per cent, to 24,612.99, the S&P 500 gained 30.77 points, or 1.17 per cent, to 2,666.73 and the Nasdaq Composite added 84.89 points, or 1.2 per cent, to 7,169.35.

The pan-European STOXX 600 index rose 1.85 per cent and MSCI’s gauge of stocks across the globe gained 1.17 per cent.

The dollar strengthened and was poised for its first weekly gain in five weeks. The dollar index rose 0.24 per cent, with the euro down 0.27 per cent to $1.1364.

Benchmark 10-year notes last fell 11/32 in price to yield 2.786 per cent, compared with 2.747 per cent late on Thursday.

Oil prices rose after an OPEC report showed that members’ production fell sharply last month.

Brent crude was last up $1.72, or up 2.81 per cent, at $62.90 a barrel. US crude was last up $1.75, or up 3.36 per cent, at $53.82 per barrel.

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