New York (AFP) – Major stock indices rose on both sides of the Atlantic on Thursday while somewhat bullish comments from the US central bank chief prompted the dollar to gain on exchange markets.
A new batch of economic data portrayed the world’s largest economy as being in generally good health: weekly jobless claims hit a 43-year low, the consumer price index posted its strongest gain in six months and monthly housing starts increased.
In New York, the tech-heavy Nasdaq gained 0.7 percent while the S&P 500 rose 0.5 percent. The Dow Jones Industrial Average held onto positive territory, adding 0.2 percent, but was weighed down by a 3 percent drop in global retail giant Wal-Mart Stores, which posted disappointing third-quarter revenues.
Equities in Europe also rose, with London’s benchmark FTSE 100 up 0.7 percent and the CAC 40 in Paris gaining 0.6 percent.
But Asian markets were directionless, suffering fresh volatility as uncertainty permeates trading floors after the shock election win of Donald Trump.
Comments in Washington by Federal Reserve chief Janet Yellen that an interest rate increase likely will be appropriate “relatively soon” gave a further shot in the arm to the dollar.
The comments supported market expectations that the US Federal Reserve will hike historically low US interest rates when it meets next month and saw the dollar gain against the euro, yen and pound.
“The dollar is enjoying another resurgence after somewhat of a lull yesterday, with Janet Yellen’s hawkish comments further raising expectations of a December hike,” said market analyst Joshua Mahony at online trading firm IG.
– ‘Good progress’ –
Yellen said that since the Fed’s last policy meeting, “I do think that the economy’s making very good progress toward our goals and that the judgment the committee reached in November still pertains.”
Investors have been struggling to gauge the outlook for the global economy under a Trump presidency after his rhetoric on trade agreements and spending plans.
In oil markets, traders were waiting to see if the producers could make good on a September agreement to cut crude output. Crude prices surged this week on news the Organization of the Petroleum Exporting Countries and Russia were pushing for an agreement before its twice-yearly meeting on November 30.
“We’ve been held in check today somewhat by a strong US dollar,” Matt Smith of ClipperData said of oil prices.
Oil futures settled lower in New York and London, changing directions after recent gains.
– Key figures around 2200 GMT –
New York – Dow: UP 0.2 percent at 18,903.82 (close)
New York – S&P 500: UP 0.5 percent at 2,187.12 (close)
New York – Nasdaq: UP 0.7 percent at 5,333.97 (close)
London – FTSE 100: UP 0.7 percent at 6,794.71 (close)
Frankfurt – DAX 30: UP 0.2 percent at 10,685.54 (close)
Paris – CAC 40: UP 0.6 percent at 4,527.77 (close)
EURO STOXX 50: UP 0.5 percent at 3,041.79 (close)
Tokyo – Nikkei 225: FLAT at 17,862.63 (close)
Hong Kong – Hang Seng: DOWN 0.1 percent at 22,262.88 (close)
Shanghai – Composite: UP 0.1 percent at 3,208.45 (close)
Euro/dollar: DOWN at $1.0630 from $1.0688 Wednesday
Dollar/yen: UP at 109.96 yen from 109.09 yen
Pound/dollar: DOWN at $1.2427 from $1.2441
Oil – West Texas Intermediate: DOWN 15 cents at $45.42 per barrel
Oil – Brent North Sea: DOWN 14 cents at $46.49
COMMENTS
Please let us know if you're having issues with commenting.