Wall Street rises along with crude oil, while the dollar falls

By: News Team

Published on:

Wall Street followed European stocks higher on Monday, even as crude rose on supply concerns, after investors were buoyed by Ukrainian advances against Russia in a war that has hurt the world economy.

* The dollar hit its lowest in about two weeks against a basket of currencies, following strong recent gains, a day before consumer price data is released, a closely watched report.

* Treasury yields eased ahead of consumer price data, though they are not expected to alter the Fed’s plans for an aggressive interest rate hike as it tries to rein in rising inflation. .

* On Saturday, Moscow abandoned its main stronghold in northeastern Ukraine, in a sudden collapse of one of the main war fronts after Ukrainian forces made a rapid advance.

* “The market rose overnight in a follow up to Friday. There is news of progress out of Ukraine. Ultimately, a move away from war is a positive for all. Obviously, it remains to be seen, but it is helping feed optimism,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut.

* As of 1607 GMT, Wall Street’s main indices were up between 0.5% and 1%. The pan-European STOXX 600 index improved 1.78% and MSCI’s measure of global shares rose 1.15%.

* Earlier, the MSCI index of Asia-Pacific shares excluding Japan rose 0.9%, after rebounding from a two-year low hit last week.

* Currency-wise, the euro reacted positively to gains in Ukraine, extending gains that began last week following rate hikes by the European Central Bank (ECB).

* The dollar index fell 0.57% and the euro gained 0.94% to $1.0133. The yen was up 0.11% at $142.36 per dollar, and the British pound was up 1.01% at $1.1704.

* Earlier, the pound briefly slipped to its lowest level since early 2021 against a robust euro, while news that the UK economy grew less than expected in July highlighted weak growth prospects.

* Benchmark 10-year bonds were up 10/32 in price, yielding 3.2831%; 30-year notes gained 11/32 in price, with a return of 3.4376%; and two-year debt was up 3/32 in price, yielding 3.5277%.

Crude futures climbed nearly 2.3% as talks over Iran’s nuclear program appeared to hit bumps and an embargo on Russian oil shipments loomed , with tight supply struggling to meet still-robust demand. .

* Spot was up 0.8% at $1,728.90 an ounce, thanks to a weaker dollar. US gold futures were up 0.67% at $1,727.70 an ounce.

Leave a Comment