Wall Street, dollar, surge higher after Trump tax talk

NEW YORK - Wall Street stocks surged to record highs on Thursday and the US dollar and bond yields rose after US President Donald Trump said he would release a "phenomenal" tax plan in the next few weeks.

Investors have been waiting for details on Trump's election campaign pledge to stimulate economic growth with large-scale fiscal stimulus through infrastructure spending and tax cuts.

 The three main US stock indexes ended in record territory as most sectors gained. Financials, which have soared since the election, were the best-performing group, up 1.4 percent after three sessions of declines, while energy shares gained 0.9 percent.

In a meeting with airline executives, the president said his administration will be announcing "something phenomenal in terms of tax" over "the next two or three weeks".

The Dow Jones Industrial Average rose 118.06 points, or 0.59 percent, to end at 20,172.4, the S&P 500 gained 13.2 points, or 0.58 percent, to 2,307.87 and the Nasdaq Composite added 32.73 points, or 0.58 percent, to 5,715.18.

The US dollar rose more than 1 percent against the yen to a six-day high, the euro fell to the day's low against the dollar, and the greenback saw a one-week high against the Swiss franc.

Benchmark 10-year US Treasury note yields were at 2.393 percent after hitting a three-week low of 2.325 percent Wednesday.

"It's been a broad-based dollar rally, driven by the headlines that Trump plans to announce something phenomenal on taxes in the next few weeks, in his words," said Kathy Lien, managing director of BK Asset Management.

"That was really the crux of the dollar rally shortly after his election and I think investors are getting really excited about that again."

The dollar had gained more than 5 percent against a basket of major currencies in the six weeks after Trump's election but has given back some of those gains as he has focused more on trade and immigration than fiscal stimulus.

Major world stock indexes also climbed on Thursday as investors took inspiration from corporate earnings and put aside the political risks that have dominated markets this week.

The MSCI all-country world stock index rose 0.31 percent to its highest in two weeks.

Shares rose in Europe, where investors have been pondering the potential impact of Trump's protectionist policies and the threat of similar policies resulting from upcoming European elections in France and Germany.

The pan-European STOXX 600 index closed 0.78 percent higher.

Oil held onto gains, with US prices rising on evidence that gasoline demand could strengthen in the world's biggest oil market.

Benchmark Brent crude settled up 51 cents at $55.63 per barrel while US light crude settled 66 cents higher at $53.00.

Concern over French and German elections later this year saw investors sell bonds of lower-rated euro zone countries earlier this week. However, yields started falling late on Wednesday and fell further on Thursday.

French 10-year government bond yields fell below 1.0 percent for the first time in two weeks.

source: news.abs-cbn.com

Asia follows Wall Street higher, upbeat US data lifts dollar

TOKYO - Asia stocks followed Wall Street higher early on Wednesday, while the dollar firmed against major peers such as the yen following the release of upbeat U.S. economic data overnight.

Crude oil prices held large gains on expectations of supply tightening once oil-producing nations implement a scheduled output cut.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2 percent.

Australian stocks were up 0.9 percent. Japan's Nikkei was little changed.

U.S. stocks rose slightly on Tuesday, supported by upbeat consumer and housing data, with gains in technology shares lifting the Nasdaq Composite to a record close.

The dollar was a shade higher at 117.500 yen, having gained about 0.3 percent the previous day on data showing U.S. consumer confidence hit its highest level in more than 15 years in December, in addition to robust housing numbers.

"Until data starts to turn negative or the headlines suggest that (U.S. president-elect) Trump's stimulus program could fall short of expectations, the dips in the dollar will be shallow with the currency aiming for new highs," wrote Kathy Lien, managing director of FX strategy for BK Asset Management.

"But at the first sign of bad news there could be massive correction in what is quickly becoming a crowded long dollar trade," Lien added.

The dollar index was 0.1 percent higher at 103.04. The euro was steady at $1.0459 and sterling was nearly flat at $1.2273 after losing 0.25 percent overnight.

The greenback was supported as U.S. Treasury yields rose on Tuesday to one-week highs in response to the strong domestic data.

The Australian and Canadian dollars also suffered losses against the greenback overnight, with the latter failing to draw support from a rally in crude oil.

In commodities, U.S. crude was a touch lower at $53.84 a barrel after an overnight gain of 1.7 percent.

Oil continued its year-end rally, albeit in thin trade, with support from expectations of tighter supply once the first output cut deal between OPEC and non-OPEC producers in 15 years takes effect on Sunday.

source: news.abs-cbn.com

Asia shares slip after Apple results hit Wall St, dollar off highs

TOKYO - Asian shares edged down on Thursday after disappointing earnings from technology giant Apple dragged on Wall Street, while the dollar remained shy of this week's nearly nine-month highs.

Besides Apple, results and forecasts from some other major US companies also weighed on US markets overnight. The S&P 500 and the Nasdaq Composite both skidded, though a standout performance by Boeing lifted the Dow Jones industrial average.

MSCI's broadest index of Asia-Pacific shares outside Japan as well as Tokyo's Nikkei stock index were both down 0.2 percent in early trading.

Expectations for a year-end rate hike by the Federal Reserve remained intact, and bolstered the greenback. In recent weeks, market participants have been pricing in more than a 70 percent chance that the US central bank would hike interest rates in December, according to CME Group's FedWatch program.

Later on Thursday, market participants will parse the latest data on US durable goods, jobless claims and pending home sales.

"These reports are not expected to have a dramatic impact on the dollar but with USD/JPY eyeing 105, stronger reports could give the pair the push that it needs to make a run for this key level," wrote Kathy Lien, managing director at BK Asset Management.

US growth figures scheduled for release on Friday could reinforce or temper Fed hike expectations.

The dollar added 0.1 percent to 104.61 yen, moving back toward this week's high of 104.87 yen touched on Tuesday, its highest level since late July.

The euro was steady at $1.0907, while the dollar index stood at 98.610, within sight of Tuesday's nearly nine-month high of 99.119.

Crude oil futures nursed losses after settling down more than 1 percent on Wednesday even after a surprise drawdown in US crude inventories, as traders remained cautious that OPEC would be able to cut production come late November.

US crude edged up 0.1 percent to $49.25 a barrel, while Brent crude was nearly flat at $49.99.

source: www.abs-cbnnews.com