S&P 500 sets record high, crypto market cap passes $2 trillion

NEW YORK - A string of surprisingly robust economic data boosted investor risk appetite on Monday, which sent the S&P 500 and the Dow to all-time closing highs and boosted cryptocurrency market cap over the $2 trillion hurdle.

Friday's employment report showed the economy added 916,000 jobs last month, suggesting stimulus and vaccine deployment have jump-started what could be the strongest yearly economic performance in decades.

Enthusiasm over the growing momentum of economic recovery was boosted on Monday with the Institute for Supply Management's nonmanufacturing PMI report, which showed the pandemic-battered services sector expanded at a record pace in March.

"You're seeing pretty broad-based strength and that's a positive for the market," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. "That kind of breadth in the market, it tends to portend advances that have legs."

That broad-based strength carried over into cryptocurrencies.

Demand for digital cash continues to grow, with market cap hitting a record high of $2 trillion on Monday.

"It's a risk-on day, and an environment where people are willing to take on risk helps the crytocurrencies," Carlson added.

The Dow Jones Industrial Average rose 373.98 points, or 1.13%, to 33,527.19, the S&P 500 gained 58.04 points, or 1.44%, to 4,077.91 and the Nasdaq Composite added 225.49 points, or 1.67%, to 13,705.59.

The dollar dipped to a one-week low against a basket of currencies as U.S. stocks rallied, although low liquidity in many parts of the world off for Easter holidays may have exaggerated the move.

The dollar index fell 0.46%, with the euro up 0.4% to $1.1809.

The Japanese yen strengthened 0.48% versus the greenback at 110.20 per dollar, while Sterling was last trading at $1.3903, up 0.54% on the day.

European and Australian stock markets were closed in observance of Easter Monday, while China's stock market was dark in observance of Tomb Sweeping day.

MSCI's gauge of stocks across the globe gained 0.97%.

Emerging market stocks rose 0.06%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.03% higher, while Japan's Nikkei rose 0.79%.

US Treasury yields dipped as investors consolidated their positions, though the uptrend remains intact in the wake of Friday's payrolls report.

Benchmark 10-year notes last rose 3/32 in price to yield 1.7127%, from 1.72% late on Friday.

The 30-year bond last rose 7/32 in price to yield 2.3541%, from 2.37% late on Friday.

Oil prices fell as increasing OPEC+ supply and rising Iranian output, along with the threat of a new wave of COVID-19 infections, offset hopes for a demand rebound driven by economic revival.

US crude settled at $58.65 per barrel, down 4.6% on the day, while Brent shed 4.18% to end at $62.15 per barrel.

Gold prices edged lower as the safe-haven metal's luster was dimmed by rising global equity prices.

Spot gold dropped 0.1% to $1,727.98 an ounce. U.S. gold futures settled little changed at $1,728.80.

-reuters-

Tech leads US stocks higher; oil gains

NEW YORK -- US stocks gained ground on Monday at the onset of a heavy earnings week, while European shares inched higher as investors took heart from potential progress in US-China trade talks and increasing geopolitical tensions sent oil prices climbing.

Tech pushed Wall Street into positive territory as investors girded themselves for a week of second-quarter results from major industrial and technology companies and eyed the US Federal Reserve's expected interest rate cut at the end of the month.

The South China Morning Post reported US trade negotiators would likely visit China next week for their first face-to-face talk with Chinese officials since US President Donald Trump postponed a new round of tariffs on Chinese imports after a meeting with his Chinese counterpart in Japan on June 29.

"I don't give much credence to the (trade) news," said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco. "The chatter will continue, but we won't see anything substantive this year."

The Dow Jones Industrial Average rose 17.7 points, or 0.07 percent, to 27,171.9, the S&P 500 gained 8.42 points, or 0.28 percent, to 2,985.03 and the Nasdaq Composite added 57.65 points, or 0.71 percent, to 8,204.14.

Growing tensions in the Middle East, coupled with worries about Britain leaving the European Union (Brexit) without a deal held world stocks flat.

"Brexit fears can be somewhat alleviated by a friendly European Central Bank, and it appears that's the way they're trending," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

The pan-European STOXX 600 index rose 0.13 percent and MSCI's gauge of stocks across the globe gained 0.05 percent.

Brent crude prices moved higher on worries that Iran's seizure of a British tanker last week could lead to supply disruptions.

US crude settled at $56.22 per barrel, up 1.06 percent, while Brent settled at $63.26, gaining 1.26 percent on the day.

The dollar and euro were little changed as traders looked to policy decisions from the US Federal Reserve and the European Central Bank regarding the pace at which they will cut interest rates, beginning with the ECB on Thursday.

"Clearly the ECB will loosen as will the Fed," added Massocca. "It's all been very well-telegraphed by the markets."

"It's positive, it's bullish, but as far as what comes out of those meetings I'm not anticipating any surprises."

The dollar index rose 0.14 percent, with the euro down 0.12 percent to $1.1207.

US Treasury yields fell and the yield curve flattened as dovish Fed bank policy supported demand for government debt.

Benchmark 10-year notes last rose 1/32 in price to yield 2.0482 percent, from 2.05 percent late on Friday.

The 30-year bond last rose 4/32 in price to yield 2.5734 percent, from 2.578 percent late on Friday.

Gold held steady, on the heels of a sharp drop in the previous session on lowered rate cut expectations, but the safe-haven metal still found support in the form of global geopolitical uncertainties.

Spot gold was up 0.08 percent at $1,425.24 an ounce.

Shipping prices rose on strong vessel demand, with the Baltic Dry Index jumping to a 5-year high.

source: news.abs-cbn.com

Asian shares rise on strong US GDP, eyes on Fed, China

SHANGHAI -- Asian stock markets edged up on Monday after surprising strong US first-quarter economic growth boosted the S&P 500 index to a record high, but gains were capped by caution over less upbeat aspects in the GDP report which pointed to some weakening ahead.

Investors were also awaiting a meeting of the US Federal Reserve this week and Chinese factory data for further clues on policy direction in the world's biggest economies.

MSCI's broadest index of Asia-Pacific shares outside Japan was up less than 0.1 percent, edging higher after posting its biggest weekly drop in more than a month last week.

Australian shares were down 0.26 percent, while Seoul's KOSPI was up 0.4 percent.

Japan's financial markets are closed for a long national holiday this week, but Nikkei 225 futures in Singapore were 0.72 percent higher.

In contrast with weakness in Asian markets last week, Wall Street ended Friday on a high note following data showing US gross domestic product grew at a faster 3.2 percent annualized rate in the first quarter.

The Dow Jones Industrial Average rose 0.31 percent to 26,543.33 and the Nasdaq Composite added or 0.34 percent to 8,146.40.

The S&P 500 gained 0.47 percent to 2,939.88, its second record closing high for the week.

Stephen Innes, managing partner at SPI Asset Management, said that despite stronger-than-expected earnings helping to lift markets, he sees "overly extended" S&P positioning.

"We have flipped from a state where it is a stock rally no one wants to take part in, to a frenzied paced splurge where hedge funds and investors alike continue to chase markets like greyhounds to the mechanical rabbit," he said in a note.

While the strong GDP data helped to ease fears of an imminent recession, investors noted that it was driven by a smaller trade deficit and a large accumulation of unsold merchandise, as consumer and business spending slowed sharply.

In a morning note to clients, analysts at National Australian said the strong GDP has a "soft underbelly", noting weak inflation.

"It is the thought that a downturn in inflation could have the Fed cutting rates before 2019 is out – at a time when the Fed is openly discussing wanting to tolerate a period of above target inflation to make up for past shortfalls – that had the interest rate markets moving the implied probability of a 2019 easing out," they said.

The March reading for core personal consumption expenditures (PCE), the Fed's favored inflation measure, is due later on Monday. The central bank will announce its policy decision on Wednesday, with Chairman Jerome Powell expected to balance the strong growth data against persistent concerns over the outlook for global growth.

Markets will also be looking to global factory activity surveys this week, particularly official and private readings on Chinese manufacturing which will both be released Tuesday.

While better-than-expected March data from China have helped eased fears of a sharp global slowdown, it has also touched off an intense debate over how much more stimulus Beijing can roll out without risking a rapid build-up in debt and potential asset bubbles.

In currency markets, the dollar was flat against the yen at 111.61. The euro was also barely changed, rising 0.02 percent to $1.1150.

The dollar index, which tracks the greenback against a basket of six major rivals, inched higher to 98.033.

US crude dipped 0.7 percent at $62.86 a barrel, continuing lower after U.S. President Donald Trump on Friday pressured the Organization of the Petroleum Exporting Countries to raise crude production to ease gasoline prices.

Brent crude fell to $71.6 per barrel.

Spot gold was slightly lower, trading at $1,285.29 per ounce.

source: news.abs-cbn.com

World stocks slip as growth fears linger; euro slides

NEW YORK -- The dollar rose to almost a two-year high against the euro on Thursday on an upbeat US capital goods report, while world equities slid as weak economic data from South Korea and a profit warning from 3M Co renewed concerns about global growth.

New orders for US-made capital goods increased by the most in eight months in March, which combined with worries about the economic health of the euro zone knocked the single currency to its lowest against the greenback since May 2017.

Other data showed the number of Americans filing claims for unemployment benefits last week was the biggest in 19 months, but the trend remains consistent with a strong labor market.

"The dollar is benefiting from strong domestic data, weak data abroad and a slew of dovish central bank meetings," said John Doyle, vice president of dealing and trading at Tempus Inc in Washington.

The euro fell 0.19 percent to $1.1131, while European shares slid after a mixed bag of earnings from the region.

Finnish telecom network equipment maker Nokia tumbled 9 percent, its biggest decline in 18 months. Nokia reported a surprise quarterly loss after it failed to supply 5G telecoms equipment on time.

The pan-European STOXX 600 index closed down 0.21 percent and MSCI's gauge of stock performance in 47 countries shed 0.25 percent.

On Wall Street, strong results from Facebook and Microsoft Corp lifted the tech-heavy Nasdaq to a new intra-day record but were offset by dismal earnings in industrials, including 3M and United Parcel Service Inc .

UPS fell 8.1 percent and the industrial sector slid 2 percent, while Facebook gained 5.8 percent and Microsoft Corp rose 3.3 percent.

The Dow industrials fell 1 percent at one point, dragged down by a 13 percent plunge in 3M shares after the company reported a lower-than-expected quarterly profit, cut its 2019 earnings forecast and said it would lay off 2,000 workers globally.

The Dow Jones Industrial Average fell 134.97 points, or 0.51 percent, to 26,462.08. The S&P 500 lost 1.08 points, or 0.04 percent, to 2,926.17 and the Nasdaq Composite added 16.67 points, or 0.21 percent, to 8,118.68.

Asian markets slid earlier in the day, losing 0.5 percent as South Korea's economy unexpectedly contracted in the first quarter, a reminder of economic fragility outside the United States.

Shanghai's bourse also fell late in the day, losing more than 2 percent on the latest central bank efforts to temper expectations for further monetary policy easing.

Chinese officials also warned of protracted pressure on economic growth, casting a shadow over hopes for a sustained recovery in the world's second-biggest economy.

The dollar index, which measures the greenback versus a basket of six major peers, held near its highest level since May 2017. The index was up 0.1 percent.

The Japanese yen strengthened 0.48 percent versus the greenback at 111.63 per dollar.

The Turkish lira weakened 0.95 percent against the dollar after Turkey's central bank left interest rates unchanged at 24 percent but in a dovish shift dropped a previous reference to possible further tightening if needed to address inflation.

US Treasury yields rose as investors piled into the safe-haven government bonds following a dovish report from Canada's central bank and solid demand at auction for $41 billion of new five-year notes.

Benchmark U.S. Treasury 10-year notes fell 3/32 in price to push yields up to 2.5343 percent.

Oil prices eased after Brent touched $75 per barrel for the first time in nearly six months on the suspension of some Russian crude exports to Europe.

Brent crude futures settled down 22 cents at $74.35 a barrel. U.S. crude fell 68 cents to settle at $65.21.

US gold futures settled unchanged at $1,279.70 an ounce.

source: news.abs-cbn.com

Wall Street edges lower, energy stocks fall

NEW YORK -- The S&P 500 slipped on Wednesday after ending the previous session with a record and the Nasdaq failed to hold all-time highs reached earlier in the day while investors waited for more earnings reports.

Energy stocks were the biggest drag on the S&P 500 as oil prices fell. While the tech-heavy Nasdaq had help from eBay Inc's upbeat earnings and a chipmaker rally, investors were digesting a mixed bag of reports. The S&P 500, closing roughly 0.5 percent below its intraday record high hit in late September, has rallied about 17 percent year-to-date. It has been supported by a dovish Federal Reserve, hopes of a US-China trade deal and largely upbeat earnings. But, with big companies such as Microsoft Corp and Facebook Inc, reporting after the close on Wednesday and Amazon.com and Intel Corp reports on tap for Thursday afternoon, many investors kept to the sidelines.

"While the expectations are for good reports from all four of them, recent strength and relative valuations are keeping people on the edge of their seat," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

"There was no needle moving news today for people to be making bigger bets on anything after the big move we had yesterday."

In aftermarket trading, Microsoft shares rose about 3 percent and Facebook shares gained nearly 5 percent.

At the market close on Wednesday, the Dow Jones Industrial Average fell 59.34 points, or 0.22 percent, to 26,597.05, the S&P 500 lost 6.43 points, or 0.22 percent, to 2,927.25 and the Nasdaq Composite dropped 18.81 points, or 0.23 percent, to 8,102.02.

Profits of S&P 500 companies are expected to decline 1.1 percent for the first quarter, still a large improvement from the 2.3 percent drop estimated at the start of April. And nearly 78 percent of the 129 companies that have reported so far have surpassed earnings estimates, according to Refinitiv data.

"The overall picture confirms the economy is on a steady footing. It's skewing to the positive side," said Laura Kane, head of Americas thematic investing at UBS Global Wealth Management.

"The market is taking a pause," she said. "We've a lot of earnings coming this week and next. There's nothing today that would change the overall economic outlook."

Only three of the S&P 500's 11 major industry sectors ended the day in positive territory, and real estate led the gainers with a 0.8 percent rise. Energy was the biggest decliner with a 1.9 percent drop.

The technology sector lost its gains late in the session to close down 0.01 percent and the Philadelphia Semiconductor Index closed up 0.95 percent after hitting an all-time high during the session. Texas Instruments Inc rose 1.8 percent after its quarterly report.

Caterpillar Inc fell 3 percent as rising costs hit margins in its construction equipment business and the company reported tepid sales in the Asia-Pacific region.

AT&T Inc was the biggest drag on the S&P 500, declining 4 percent after the second-largest US wireless carrier reported quarterly revenue below Wall Street estimates.

EBay jumped 5 percent after the company raised its full-year sales and profit forecasts.

Anadarko Petroleum Corp jumped 11.6 percent, providing the biggest boost to the S&P 500, after Occidental Petroleum Corp sought to scuttle Chevron Corp's takeover of the company with a $57 billion bid.

Boeing Co closed up 0.38 percent even after scrapping its 2019 outlook and reporting quarterly revenue below estimates due to grounding of its 737 MAX jets. Its shares have lost about 11 percent since the deadly Ethiopian crash in early March.

Advancing issues outnumbered declining ones on the NYSE by a 1.01-to-1 ratio; on Nasdaq, a 1.09-to-1 ratio favored decliners.

The S&P 500 posted 49 new 52-week highs and two new lows; the Nasdaq Composite recorded 96 new highs and 37 new lows.

On US exchanges 6.57 billion shares changed hands compared with the 6.65 billion-share average for the last 20 sessions.

source: news.abs-cbn.com

World stocks slide before corporate results, dollar gains

NEW YORK -- A gauge of global equity markets slid on Thursday as investors waited for first-quarter earnings reports, while Treasury yields rose after strong US data and a six-month extension of a deadline for Britain to leave the European Union.

The dollar index rose as worries about the world's largest economy eased after US data showed March producer prices increased by the most in five months and weekly jobless claims fell to the lowest since 1969.

The data followed a decision by EU leaders to push the Brexit deadline to Oct. 31 so that Britain would not crash out of the bloc on Friday without a treaty - though it offered scant clarity on when, how or if departure will happen.

Regional and country indexes in Europe rose but Wall Street retreated as investors awaited the first-quarter US earnings season, which starts in earnest on Friday. Profit estimates have dropped steadily in the last six months, with earnings by S&P 500 companies expected to fall 2.5 percent and mark the first year-on-year decline since 2016, according to Refinitiv data.

"The big elephant out there is earnings. Street estimates are for a year-over-year decline despite higher revenue and that's driven by a handful of large companies that are heavily weighted, so it could be a bit deceiving," said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.

"Often the market will just wait it out when we start to get close to earnings."

MSCI's gauge of stock market performance in 47 countries shed 0.17 percent, while the pan-European STOXX 600 index closed up 0.11 percent. France's CAC 040, Germany's DAX and Italy's MIB all rose.

European airline stocks rose, with the travel and leisure index rising 1.3 percent, after the Brexit extension. Irish stocks, which are especially sensitive to a potential hard Brexit, tacked on 0.6 percent.

Trading volume on Wall Street was the lowest so far in 2019.

The Dow Jones Industrial Average fell 14.11 points, or 0.05 percent, to 26,143.05. The S&P 500 gained 0.11 point to 2,888.32 and the Nasdaq Composite dropped 16.89 points, or 0.21 percent, to 7,947.36.

STERLING SLIPS

In currency trading, the dollar index rose 0.23 percent, with the euro down 0.14 percent to $1.1257.

The Japanese yen weakened 0.57 percent versus the greenback at 111.66 per dollar. Sterling fell 0.25 percent to $1.3056, suggesting fears remain about Brexit.

Germany's 10-year bond yield edged up after the Brexit announcement, while a signal from the European Central Bank that it will fight low economic growth and inflation boosted peripheral debt.

Germany's 10-year bond yield was up 0.02 percentage point at negative 0.01 percent.

US Treasury benchmark 10-year notes last fell 6/32 in price to yield 2.5006 percent.

Oil prices fell more than 1 percent after sources said the Organization of the Petroleum Exporting Countries may raise output from July if Venezuelan and Iranian supplies fall further and prices keep rallying.

US crude fell $1.03 to settle at $63.58 per barrel. Brent settled down 90 cents at $70.83.

Gold prices fell more than 1 percent, slipping below the key $1,300 level, as robust economic data from the United States boosted the dollar, taking the sheen off the safe-haven metal.

US gold futures settled 1.6 percent lower at $1,293.3 an ounce. 

source: news.abs-cbn.com

Wall Street powers world stocks; dollar up on Brexit woes

NEW YORK -- Wall Street led global stocks higher on Thursday on the back of upbeat economic data, while the dollar rallied despite the Federal Reserve's uber-dovish stance as Brexit worries weighed on the euro and sterling.

The British currency tumbled 0.73 percent against the US dollar on a rising probability of a "no-deal" Brexit that would likely slow economic growth.

A day after the Fed flagged an economic slowdown, US data showed jobless benefit applications fell more than expected while mid-Atlantic factory activity rebounded, triggering gains in technology stocks, and the Wall Street benchmark closed at its highest in over five months.

The Dow Jones Industrial Average rose 216.84 points, or 0.84 percent, to 25,962.51, the S&P 500 gained 30.65 points, or 1.09 percent, to 2,854.88 and the Nasdaq Composite added 109.99 points, or 1.42 percent, to 7,838.96.

MSCI's gauge of stocks across the globe gained 0.68 percent and emerging market stocks rose 0.11 percent.

Brazil's stock benchmark fell sharply after former president Michel Temer, who left office three months ago, was arrested as part of the sweeping anti-corruption "Car Wash" probe.

The Bovespa fell 1.3 percent while the Brazilian currency lost 0.64 percent at 3.7995 per dollar.

TREASURY YIELD CURVE FLATTENS

Benchmark Treasury yields briefly touched their lowest since early 2018 and the yield spread between the three-month Treasury bill and the 10-year note shrank to its narrowest since August 2007. A narrow spread between the two yields indicates increased market expectations of a recession.

"The Fed has doubled down on its dovish tilt," said Matt Freund, head of fixed-income strategies at Calamos Investments. "The global economy is clearly softening and the Fed is looking at liquidity conditions."

Benchmark US 10-year notes last fell 1/32 in price to yield 2.5387 percent, from 2.537 percent late on Wednesday.

Three-month bills were yielding 2.4175 percent.

The 30-year bond last rose 7/32 in price to yield 2.9651 percent, from 2.975 percent late on Wednesday.

The US dollar recouped the ground lost in the previous session after the dovish Fed's statement. Sterling continued to fall with the rising likelihood of a no-deal Brexit.

European Union leaders wrangled over what kind of delay to offer Britain as it looked less likely that Prime Minister Theresa May can convince parliament to ensure an orderly withdrawal.

The pound was recently trading at $1.31, down 0.69 percent on the day.

The dollar index rose 0.63 percent, with the euro down 0.35 percent to $1.1371.

"The focus shifted back to Brexit and the potential downside that a 'no deal' would create," said Minh Trang, senior currency trader at California's Silicon Valley Bank.

Norway's currency shot up after its central bank, going against the grain, raised interest rates and signaled a 50-50 chance another hike will follow by mid-year.

The Norwegian krone gained 0.56 percent versus the U.S. dollar at 8.46.

Oil prices fell after touching their highest in 2019.

US crude fell 0.7 percent to $59.81 per barrel and Brent was last at $67.64, down 1.26 percent on the day.

Spot gold dropped 0.2 percent to $1,309.27 an ounce. Copper lost 0.38 percent to $6,432.50 a tonne.

source: news.abs-cbn.com

European shares rise on Brexit vote delay, Wall Street little changed

NEW YORK -- A gauge of global equity markets traded little changed on Thursday as European shares rose ahead of new voting that backed a Brexit delay and bolstered the dollar, while Wall Street meandered on uncertainty over US-China trade talks.

The dollar gained for the first time in a week as the pound fell even after Parliament voted overwhelmingly to seek a delay to the March 29 deadline for Britain to exit the European Union.

Lawmakers also voted against a second referendum on EU membership as the delay vote set the stage for Prime Minister Theresa May to renew efforts to get a divorce deal approved by Parliament next week.

Sterling fell 0.86 percent to $1.3222 after gaining almost 2 percent late on Wednesday on a vote to defeat a "no-deal" Brexit.

Uncertainty about Brexit favored waiting for some clarity in the market as there was a lack of conviction, said Charles Tomes, senior investment analyst at Manulife Asset Management.

"Volatility is low and people don't want to put on sizeable positions either way," Tomes said.

European shares rose to a five-month high as sentiment improved from cautious to upbeat after the open. But a Bloomberg report of a likely delay in US-China trade talks, coupled with fresh data showing weak US home sales, hurt US stocks.

Data showing China's industrial output grew 5.3 percent in January and February, the slowest pace of expansion in 17 years, is also a concern, said Kristina Hooper, chief global market strategist at Invesco.

While fiscal and monetary stimulus will improve China's economy down the road, fear of US-China trade wars and economic slowdown are driving market sentiment for the moment.

"In general, what we have is a picture that doesn't look particularly positive today," Hooper said.

MSCI's gauge of stocks across the globe shed 0.03 percent while the FTSEurofirst 300 index of leading European shares closed up 0.77 percent.

On Wall Street, the Dow Jones Industrial Average rose 7.05 points, or 0.03 percent, to 25,709.94. The S&P 500 lost 2.44 points, or 0.09 percent, to 2,808.48 and the Nasdaq Composite dropped 12.50 points, or 0.16 percent, to 7,630.91.

The dollar index, a gauge of its strength against six other major trading currencies, rose 0.24 percent to 96.783 after brushing a nine-day trough overnight of 96.385.

The euro fell 0.2 percent to $1.1302, and the Japanese yen weakened 0.46 percent versus the greenback at 111.70 per dollar.

US Treasury prices dropped in quiet trading.

The benchmark 10-year note fell 5/32 in price to push its yield to 2.6285 percent.

Oil prices were mixed, lifted by solid demand and output cuts led by the Organization of the Petroleum Exporting Countries, though gains were capped by an ongoing surge in US supply while analysts warned of risks to the global economy.

US West Texas Intermediate (WTI) crude oil futures rose 35 cents to settle at $58.61 per barrel, but Brent crude futures settled down 32 cents at $67.23 per barrel.

Gold slipped below $1,300 for a second time this month as the dollar gained and British lawmakers approved a Brexit delay.

US gold futures settled 1.1 percent lower to $1,295.1 an ounce.

source: news.abs-cbn.com

World stocks rise on tame US inflation, dollar eases

NEW YORK -- A gauge of world equity markets rose and the dollar eased on Tuesday after a tame reading on US inflation reinforced expectations the Federal Reserve will not raise interest rates anytime soon, while Boeing shares slid for a second day.

US consumer prices rose for the first time in four months in February but the modest pace of the increase resulted in the smallest annual gain in inflation in nearly 2-1/2 years.

In the 12 months through February, the CPI rose 1.5 percent, well under the Fed's target of 2 percent, leading the dollar to slip against the euro and the dollar index of leading US trading partners' currencies to fall. Gold gained on the weaker greenback.

"The takeaway from the data was that inflation is in check and that would allow the Fed to remain patient and that is always good for equities," said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance in Charlotte, North Carolina.

Candice Bangsund, part of the Global Asset Allocation team at Fiera Capital in Montreal, said it was premature to rule out further central bank tightening this year and that those who see a rate cut as the Fed's next move were overly pessimistic.

"While we don't see inflation coming back in an aggressive manner, we do see inflation slowly accelerating," she said.

Boeing Co slumped 6.13 percent to extend Monday's losses as more countries, including all of the European Union, grounded the company's 737 MAX planes following a second fatal crash of a MAX 8 jetliner in five months.

Rival airplane manufacturer Airbus SE was the biggest contributor to advancing shares in the FTSEurofirst 300 of leading European shares, rising 1.43 percent. But the index edged lower as investors awaited a Brexit vote.

Britain's parliament late Tuesday rejected Prime Minister Theresa May's deal to quit the EU for a second time, deepening the country's worst political crisis in generations, a scant 17 days before the planned departure date.

Sterling fell in volatile trading, down 2 percent to $1.3006 at one point. The pound later recouped some losses to trade 0.59 percent lower at $1.3076 after the vote.

MSCI's all-country world index of equity performance in 47 countries rose 0.49 percent, while the pan-European STOXX 600 index lost 0.06 percent.

On Wall Street, the S&P 500 gained 8.22 points, or 0.30 percent, to 2,791.52 and the Nasdaq Composite added 32.97 points, or 0.44 percent, to 7,591.03.

The Dow Jones Industrial Average fell 96.22 points, or 0.38 percent, to 25,554.66, dragged lower by slumping Boeing.

Investors have been too bearish on the economy, Bangsund said, adding that Fiera Capital had gone overweight on equities in expectations of a successful US-China trade accord and a stabilized Chinese economy, which would help spur global growth.

The Mexican peso and Canadian dollar gained on the tame US inflation data as the dollar index fell 0.27 percent and the Japanese yen weakened 0.08 percent versus the greenback at 111.28 per dollar.

The euro gained 0.43 percent to $1.1295.

US Treasury yields drifted lower after the inflation data.

US long-dated yields have fallen in six of the last seven sessions, while those on two-year notes, the security most sensitive to interest rate moves, dropped in five of the last seven.

Benchmark 10-year US Treasury notes rose 12/32 in price to push the yield down to 2.5997 percent.

Oil prices rose, supported by signs of tightening global supply after a Saudi official said the kingdom plans to cut oil exports in April, while a power outage in Venezuela reduced its crude exports.

Brent crude futures settled up 9 cents at $66.67 a barrel. US West Texas Intermediate crude futures rose 8 cents to settle at $56.87 a barrel.

US gold futures settled 0.5 percent higher at $1,297.70.

source: news.abs-cbn.com

Global stocks surge in broad rally, Treasury yields rise

NEW YORK -- Global equity markets surged on Monday, lifted by talk of more stimulus from China and by a broad rally on Wall Street that overcame a plunge in Boeing shares after one of its newest jets crashed, while US debt yields rose on improved risk appetite.

China's main bourses clawed back almost half the 4 percent they lost on Friday as the country's central bank chief pledged billions of dollars of cuts to taxes and fees to shore up an economy growing at its slowest pace in almost three decades.

US stocks followed strong gains in Europe with the tech-heavy Nasdaq rising 2 percent and the benchmark S&P more than 1 percent after Wall Street posted losses every day last week.

MSCI's gauge of global markets posted its biggest gain in seven weeks while European shares notched their best day in four weeks.

"This market, it comes in waves. Everybody who missed the rally in January and February is looking to buy the dip," said Dennis Dick, a proprietary trader who is head of market structure at Bright Trading LLC in Las Vegas.

"It's buy the dip, it's back," Dick said.

The rally on Wall Street given the decline in Boeing's shares was especially impressive, said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

"It's a very strong sign of overall market strength," James said. "After the weakness in the markets last week, things have gotten a little bit oversold," he said.

The Dow rebounded after Boeing Co, the index's best performing component this year, pared steep losses after some airlines grounded the company's new 737 MAX 8 passenger jet following a second deadly crash of the airliner in five months.

Boeing shares dropped 5.3 percent, paring losses of about 13.5 percent shortly after the open.

The Dow Jones Industrial Average rose 200.64 points, or 0.79 percent, to 25,650.88. The S&P 500 gained 40.23 points, or 1.47 percent, to 2,783.3 and the Nasdaq Composite added 149.92 points, or 2.02 percent, to 7,558.06.

The FTSEurofirst 300 index of leading regional shares closed up 0.76 percent, while MSCI's gauge of stocks across the globe gained 1.2 percent.

European shares rose on merger chatter in the battered banking sector, which along with talk of new Chinese stimulus, helped ease worries over a slowdown in the global economy.

In China, the Shanghai Composite index rose 1.92 percent and the blue-chip CSI300 gained 1.98 percent.

The dollar weakened after mixed U.S. retail sales data and sterling jumped as investors braced for parliamentary votes on Prime Minister Theresa May's Brexit deal that could decide the terms on which Britain leaves the European Union.

May's failure to win last-minute concessions from the European bloc regarding the Irish border set the stage for another humiliating defeat in parliament.

Sterling fell in early trade but later erased its losses to trade at $1.3145, up 1 percent on the day.

The dollar index fell 0.11 percent, with the euro up 0.05 percent to $1.1244. The Japanese yen weakened 0.09 percent versus the greenback at 111.24 per dollar.

Norway's crown gained after strong inflation data raised interest rate hike expectations, with some strategists saying a March move by the Norges Bank was a done deal.

With market volatility low, investors have rushed to buy currencies where central banks are still raising rates or economic data has pointed to a brighter economic outlook.

The benchmark 10-year US Treasury note fell 5/32 in price to yield 2.6411 percent.

Oil prices rose 1 percent on Monday, lifted by comments from Saudi Energy Minister Khalid al-Falih that an end to OPEC-led supply cuts was unlikely before June.

US crude rose 72 cents to settle at $56.79 per barrel and Brent settled 84 cents higher at $66.58.

Gold fell, moving further off the key $1,300-per-ounce mark it briefly surpassed last week.

US gold futures settled 0.6 percent lower at $1,291.10 an ounce.

source: news.abs-cbn.com

Pound volatile at start of hectic Brexit week

NEW YORK -- The British pound see-sawed Monday as traders jockeyed for position on the eve of another critical parliamentary vote for Prime Minister Theresa May.

Meanwhile, in New York, US stocks snapped a 5-day losing streak, despite a sharp decline early in the session for Boeing following Sunday's deadly crash involving one of its a top-selling passenger jets.

The British currency kicked off the trading cycle in Asia by tanking to its lowest level since February 19 at $1.2949, but then bounced back in the European day -- with analysts trying to guess where it may head next.

As British MPs prepare to vote again on a Brexit divorce deal on Tuesday, the prime minister appears to have little to show for her recent efforts, prompting warnings of another humiliating defeat.

"We are 24-hours away from May's supposed 'meaningful' Brexit vote and the rumor is that (she) could lose this vote by a wider margin than the last one," said Oanda analyst Dean Popplewell. "As expected, sterling remains volatile".

May was expected on Monday to travel to Strasbourg in a last bid to win a breakthrough deal.

European markets notched gains, but in Asia, bourses were mixed as bargain-buying in the wake of last week's sharp losses was offset by Friday's weak US February jobs report and ongoing concerns about the global economy.

Elsewhere, on Wall Street shares in Boeing fell 5.3 percent for the day, paring earlier losses of more than 12 percent that threatened to wipe out tens of billions of the company's market value.

SOOTHING WORDS FROM POWELL 

Two of the company's highly popular 737 MAX 8 jets have crashed in 5 months, including a fatal accident in Ethiopia on Sunday.

The benchmark Dow Jones Industrial Average, in which Boeing's stock is heavily weighted, rose 0.8, erasing steep losses from earlier in the day, while the S&P and Nasdaq both rose even higher.

Investors were comforted by Sunday's broadcast remarks from Federal Reserve Chairman Jerome Powell, who reiterated that the central bank would be "patient" before raising interest rates again.

"He confirmed everything we knew: patience, confidence in the economy and the labor market, the Fed's independence," Gregori Volokhine of Meeschaert Financial Services told AFP.

"But above all he gave the impression of stability, which is an extremely reassuring position at the head of a body as important as the Fed."

Last year, President Donald Trump angrily and very publicly denounced the Fed's "crazy" interest rate hikes, breaking with traditional reserve from presidents toward the world's most powerful central bank.

iPhone maker Apple soared 3.5 percent following an upgrade from analysts at Bank of America.

The Commerce Department meanwhile reported US retail sales had recovered slightly after a dismal December, pointing to slower growth at least in the first quarter of this year.

KEY FIGURES AT 5 A.M. 

Pound/dollar: UP at $1.3149 from $1.3015 at 2200 GMT on Friday

Euro/pound: DOWN at 85.53 pence from 86.30 pence

Euro/dollar: UP at $1.1248 from $1.1235

Dollar/yen: UP at 111.20 yen from 111.17 yen 

New York - UP 0.8 percent at 25,650.88 (close)

New York - UP 1.5 percent at 2,783.30 (close)

New York - UP 2.0 percent at 7,558.06 (close)

London - FTSE 100: UP 0.4 percent at 7,130.62 points (close)

Frankfurt - DAX 30: UP 0.8 percent at 11,543.48 (close)

Paris - CAC 40: UP 0.7 percent at 5,265.96 (close)

EURO STOXX 50: UP 0.6 percent at 3,304.44 (close)

Tokyo - Nikkei 225: UP 0.5 percent at 21,125.09 (close)

Hong Kong - Hang Seng: UP 1.0 percent at 28,503.30 (close)

Shanghai - Composite: UP 1.9 percent at 3,026.99 (close)

Oil - Brent Crude: UP 84 cents at $66.58 per barrel

Oil - West Texas Intermediate: UP 72 cents at $56.79

source: news.abs-cbn.com

Asian shares retreat, China cuts growth target

TOKYO -- Asian shares stepped back on Tuesday after China cut its economic growth target and pledged measures to support the economy amid growing challenges from rising debt and a dispute over trade and technology with the United States.

Australian shares dropped 0.6 percent while South Korea's Kospi lost 0.5 percent. MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.2 percent and Japan's Nikkei dropped 0.3 percent.

China cut its growth target for this year to 6.0 to 6.5 percent, in line with expectations, from around 6.5 percent last year.

Premier Li Keqiang also said the country sees budget deficit of 2.8 percent of GDP and the Finance Ministry set quota for local government's special bond issues at 2.15 trillion yen, 0.8 trillion yen above last year.

"The increase in local governments' special bond is fairly large," said Naoto Saito, chief researcher at Daiwa Institute of Research.

"Since those funds will be solely used for infrastructure investments, you cannot avoid the impression that the government is relying on investments to support the economy in the short-term rather than de-leveraging. This could cause problems in the longer term."

Wall Street's major indexes fell on Monday, with the Dow Jones Industrial Average shedding 0.79 percent and the S&P 500 losing 0.39 percent.

An unexpected fall in US construction spending, data that normally attracts little attention, was cited as a factor.

But others saw the retreat as a long overdue correction after a rally since late last year.

MSCI's World index,, a gauge of 23 developed markets, has risen 16.6 percent from its near two-year low set on Dec. 26 low, even as the earnings outlook stagnated, driven by hopes of a dovish Fed and a compromise between Beijing and Washington on trade.

The index is now trading at 14.6 times expected earnings, the highest level since early October, when a bear market began globally.

Thus a media report on Monday that US President Donald Trump and Chinese President Xi Jinping could reach a formal trade deal at a summit around March 27 prompted profit-taking rather than follow-through buying.

The 10-year US Treasuries yield dropped to 2.724 percent after touching from six-week highs of 2.768 percent in the past two sessions.

In currency markets, the dollar held an upper hand against many of its rivals as other major central banks are seen tilting to a more dovish stance than the Federal Reserve.

The euro fetched $1.1339, having dropped 0.25 percent on Monday, amid expectations the European Central Bank is preparing to give banks more cheap, long-term funding at its policy meeting on Thursday.

The dollar traded at 111.75 yen, off a 10-week high of 112.08 on Friday.

Gold has fallen for four days in a row by Monday to as low as $1,283.10 per ounce, its lowest level since Jan. 25. It last stood at $1,286.6. Silver hit two-month lows of $15.0725 per ounce.

Oil prices held firm after OPEC ally Russia said it would ramp up supply cuts.

US crude futures stood at $56.41 per barrel, down 0.3 percent in early Asia but still up 1 percent on the week.

source: news.abs-cbn.com

US stocks edge up after dovish Fed minutes

NEW YORK - Wall Street stocks edged higher on Wednesday after Federal Reserve minutes further signaled the US central bank's dovish posture on monetary policy.

The Dow Jones Industrial Average added 0.2 percent at 25,954.44.

The broad-based S&P 500 also gained 0.2 percent to 2,784.70, while the tech-rich Nasdaq Composite Index edged up less than 0.1 percent to 7,489.07.

The Fed minutes lent color to the central bank's decision of January 30 to not raise interest rates and hinted at caution towards further tightening, saying US growth would "step down" from last year's rapid pace.

"Anyone thinking maybe the Fed did not intend to send the message Powell delivered at the press conference can stop wondering," said FTN Financial's Chris Low. "The Fed really is on long-term hold and the next policy move really could be a cut."

US stocks rose just after the minutes were released at 1900 GMT but pulled back after that around the same time President Donald Trump said he could impose tariffs on European auto imports if there was no new trade deal with the EU.

Investors are also eyeing key trade talks between the Trump administration and Chinese officials.

"Unless we have an absolute disaster, like a recession or Trump calling off the trade talks, the stock market is going to go higher," said LBBW's Karl Haeling.

"There is a lot of cash out there."

CVS Health dived 8.1 percent after reporting an annual loss following a $6.1 billion write-down of its 2015 Omnicare, which provides pharmacy services to long-term care facilities.

American Airlines, United Continental and Delta Air Lines were all down about one percent after smaller rival Southwest Airlines said the US government shutdown dented business more than previously thought.

Southwest now expects a negative revenue hit of $60 million, up from the previous projection of $10 to $15 million. Shares of Southwest slumped 5.7 percent.

source: news.abs-cbn.com

US stocks jump as shutdown, trade fears recede

NEW YORK -- Wall Street stocks jumped Tuesday as President Donald Trump downplayed the chance of another government shutdown and said he could delay new tariffs on Chinese imports.

The Dow Jones Industrial Average snapped a 4-day losing streak, soaring more than 370 points to close up 1.5 percent at 25,425.76.

The broader S&P 500 rose 1.3 percent, closing at 2,744.73, while the tech-rich Nasdaq Composite Index also added 1.5 percent, closing at 7,414.62

The US president, while not ruling anything out, suggested his latest funding fight with congressional Democrats over border security would not result in another shutdown.

Trump told reporters he was not pleased with a deal by bipartisan lawmakers to offer nearly $1.4 billion for a barrier along the southern US frontier -- far less than the $5.7 billion he initially sought.

"I can't say I'm happy, I can't say I'm thrilled," Trump said. But he also told a Cabinet meeting in the White House: "I don't think you're going to see a shutdown."

During a back-and-forth with reporters at the same meeting, Trump also said he would consider extending the deadline for a trade deal with China beyond March 1.

"If we're close to a deal, where we think we can make a real deal... I could see myself letting that slide for a little while," Trump said.

The comments came as the third round of trade negotiations were set to resume in Beijing to avert more than doubling tariffs on $200 billion in Chinese imports.

Stocks were in positive territory prior to Trump's remarks, but added to gains.

"We got good news on two hot-button issues," said Jack Ablin, chief investment officer at Cresset Capital Management.

Tuesday's gains were fairly broad-based, with Caterpillar, DowDuPont, Intel, 3M and UnitedHealth Group among the Dow members rising more than two percent.

Cosmetics company Coty shot up 12.5 percent after JAB Holding Company proposed buying up to 150 million shares, raising its stake to about 60 percent of the company.

JAB manages the fortune of Germany's Reimann family.

Gilead Sciences fell 3.3 percent after reporting disappointing clinical results of a treatment for cirrhosis.

source: news.abs-cbn.com

Asian shares in tight range ahead of US-China trade talks

SYDNEY -- Asian shares started the week on the backfoot on Monday as worries about global growth, US politics and the ongoing Sino-US tariff war kept investors cautious, while the safe-haven greenback held near a six-week top against major currencies.

MSCI's broadest index of Asia-Pacific shares outside Japan was a tad weaker after it was toppled from a four-month top on Friday.

Trading volumes are expected to be thin with Japan on public holiday, while Chinese markets reopen after a week-long break for the Lunar New Year holiday.

World stocks ended last week in the red amid uncertainty about global economic growth and trade tensions, posting their first weekly drop this year.

Still, Wall Street's main equity indexes recouped losses late on Friday, with the benchmark S&P 500 ending marginally positive and the Nasdaq adding 0.14 percent. The Dow Jones Industrial Average fell 0.25 percent.

Investors are looking ahead to trade talks this week with a delegation of US officials traveling to China for the next round of negotiations.

Of recent concern to markets was the collapse in talks between US Democrat and Republican lawmakers over the weekend amid a clash over immigrant detention policy, raising fears of another government shutdown.

That development comes in the wake of other news headlines that markets have had to process since late last week. These include a sharp downgrade to euro zone growth this year and next and U.S. President Donald Trump's declaration that he had no plans to meet with Chinese President Xi Jinping before a March 1 deadline to achieve a trade deal.

"Growth is probably the big area of risk – the U.S. is still on a healthy track but China stabilisation is more hope than reality at the moment while European momentum continues to soften," JPMorgan analysts said in a note.

"Investors have plenty to be nervous about, including the ongoing growth softness in Europe and the risk this drags the other major geographies down with it," they added.

"But US trade policies shouldn't be high on the list, trade rhetoric will stay a problem though."

Markets will closely watch earnings from major U.S. companies including Coca-Cola Co, PepsiCo Inc, Walmart Inc, Home Depot Inc, Macy's Inc and Gap Inc for further clues about the health of the consumer sector.

Analysts now expect first-quarter earnings for S&P 500 companies to decline 0.1 percent from a year earlier, which would be the first such quarterly profit decline since 2016, according to IBES data from Refinitiv.

In currency markets, the dollar held near a six-week high around 96.665 against a basket of currencies, and had its strongest weekly gain in six months, as traders piled into the greenback in a safe-haven move.

The euro was slightly weaker at $1.1321 while sterling down 0.1 percent at $1.2933.

The Australian dollar hovered near one-month lows after the country's central bank shifted away from a previous tightening bias to say rates could now go in either direction.

The Aussie was last at $0.7092 after going as deep as $0.7060 on Friday.

Oil prices held near recent ranges with gains capped by concerns about slowing global demand.

US crude was 13 cents weaker in early Asia at $52.57 per barrel while Brent had settled at $62.06 on Friday.

source: news.abs-cbn.com

World stocks hit fresh two-month high, dollar firms

NEW YORK -- A gauge of global stocks hit a two-month high on Monday, as gains for technology and industrial shares fueled a rise on Wall Street, while the US dollar gained for a third straight session against a basket of currencies and US Treasury yields rose.

Oil prices pulled back after reaching their highest levels in roughly two months.

MSCI's gauge of stocks across the globe gained 0.33 percent, reaching a fresh two-month high.

Investors were parsing the significance for financial markets from Friday's strong US jobs report, which came on the heels of the Federal Reserve saying it would be patient on future rate hikes amid a cloudy outlook for the US economy.

“Investors are realizing that the Fed is at least going to be friendly here in the near term," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"Some of these things that were weighing as negatives... namely a tighter Fed, lack of progress on the tariffs, those things are starting to improve or have improved, and as a result there are more reasons to be investing in stocks," Hellwig said.

On Wall Street, the Dow Jones Industrial Average rose 175.48 points, or 0.7 percent, to 25,239.37, the S&P 500 gained 18.34 points, or 0.68 percent, to 2,724.87 and the Nasdaq Composite added 83.67 points, or 1.15 percent, to 7,347.54.

Technology and industrials were the biggest gainers among the S&P 500 sectors, as investors braced for another big week of fourth-quarter corporate earnings reports.

The pan-European STOXX 600 index rose 0.06 percent as the heavyweight banking sector fell following poor results from Julius Baer.

The US dollar strengthened across the board, as investors took heart from Friday's strong payrolls number.

The dollar index, which measures the greenback against a basket of currencies. rose 0.27 percent, with the euro down 0.18 percent to $1.1433.

Improved risk appetite helped lift the dollar to a five-week high against the safe-haven yen.

US Treasury prices fell in generally thin volume, pressured by upcoming debt supply, as well as indications that inflation expectations are rising.

Benchmark 10-year notes last fell 10/32 in price to yield 2.7253 percent, from 2.691 percent late on Friday.

Oil prices fell after disappointing US factory data sparked fresh concerns about a slowdown in the global economy. But losses were limited as OPEC-led supply cuts and US sanctions against Venezuela brightened the supply outlook.

US crude settled down 1.3 percent at $54.56 per barrel and Brent settled down 0.4 percent at $62.51.

source: news.abs-cbn.com

World stocks post best January on record, yields fall

NEW YORK -- Global equity markets mostly rose on Thursday, fueled by upbeat Facebook earnings and the Federal Reserve's pledge to be patient in raising borrowing costs further, while US bond yields fell on indications of weaker-than-expected inflation.

The benchmark S&P 500 posted its biggest monthly percentage gain, at 7.89 percent, since October 2015 as US equities continued to surge from their late 2018 swoon. The tech-heavy Nasdaq rose 9.74 percent in its best month since October 2011.

The Dow edged lower on a downbeat report by DowDuPont Inc, but MSCI's gauge of global stock performance rose as it posted its best January on record. DowDuPont shares closed down 9.2 percent.

The Dow Jones Industrial Average fell 15.19 points, or 0.06 percent, to 24,999.67. The S&P 500 gained 23.05 points, or 0.86 percent, to 2,704.1 and the Nasdaq Composite added 98.66 points, or 1.37 percent, to 7,281.74.

US crude prices settled lower as uncertainty about Sino-US trade talks overtook the bullish news about production cuts by the Organization of the Petroleum Exporting Countries and its allies, including Russia, and the Fed's dovish stance.

President Donald Trump said he wanted a "very big" trade deal with China, but he signaled there could be delays if talks fail to meet his goals of opening the Chinese economy broadly to US industry and agriculture.

The Fed's dovish message on monetary policy eased concerns that tighter financial conditions could crimp growth and helped spur stocks along with solid corporate results, such as earnings from Facebook, which topped analysts' estimates.

Facebook shares rose 10.82 percent.

The Fed's stance was "stunning" but Chairman Jerome Powell may be trying to calm the market so that he can hike rates later this year in a classic "rope-a-dope" tactic, said Mike Terwilliger, a portfolio manager at Resource America Inc.

Economic data remains weak and a future downturn suggest the Fed should hike rates this year because it won't be able to when the US electoral campaign is in full swing in 2020, he said.

"The need to reload the gun is not going away and the politics suggest he should be as well," Terwilliger said.

Amazon.com Inc forecast first-quarter sales below Wall Street estimates, even as sales for the holiday quarter hit a record high, rising 20 percent. Shares of the company fell 1.1 percent to $1,700 in trading after the bell.

MSCI's index of stocks worldwide rose 0.92 percent and its emerging market index gained 1.28 percent.

European shares ended a choppy session flat as disappointing economic data, including a technical recession in Italy, sapped an early boost provided by the Fed's dovish tone.

German retail sales fell at the fastest rate in 11 years, British car production posted its biggest drop since 2009 and euro zone growth was the slowest in four years.

The STOXX 600 ended the day up 0.04 percent but gained 6.1 percent in January, its strongest month since October 2015.

The FTSEurofirst 300 index of leading European shares closed up 0.23 percent, with oil heavyweights Royal Dutch Shell, BP and Total among top gainers.

The dollar index rose 0.23 percent, with the euro down 0.28 percent to $1.1445. The Japanese yen firmed 0.12 percent versus the greenback at 108.92 per dollar.

Treasury yields fell after the Chicago Purchasing Managers Index, a measure of regional manufacturing activity, fell to its lowest in two years.

The Employment Cost Index, the broadest measure of US labor costs, rose 0.7 percent in the fourth quarter after an unrevised 0.8 percent gain the previous quarter, the Labor Department said.

The data continued a pattern of low inflation.

"What you've seen the last couple days with the market is the Street's reaction to recognition that cheap money is going to continue for the foreseeable future," said Brian Ward, chief executive of Trimont Real Estate Advisors in Atlanta.

The 10-year U.S. Treasury note rose 17/32 in price to push its yield down to 2.6328 percent.

US West Texas Intermediate (WTI) crude futures fell 44 cents to settle at $53.79 per barrel. Brent crude oil futures rose 24 cents to settle at $61.89.

US gold futures settled up 0.7 percent to $1,319.70 an ounce.

source: news.abs-cbn.com