December 16, 2017
Friday, January 16, 2015

Stocks rally on US data, euro slides further

Wall Street stocks rebounded signs the US economy was on track for solid growth with consumer sentiment hitting an 11-year high, while the euro slid further against the dollar a day after Switzerland ditched its currency cap.

Crude prices rallied on the US sentiment report and after the International Energy Agency said lower prices had begun to curb production in some areas, including North America. The IEA said prices might fall further, but "signs are mounting that the tide will turn."

US gasoline prices fell again in December, leading consumer prices to post their biggest decline in six years, while a gauge of underlying inflation was flat. The data could make the Federal Reserve cautious about raising interest rates.

Global equity markets rebounded, with US stocks capping five straight sessions of losses. European shares rose on growing expectations of economic stimulus from the European Central Bank.

The day after the euro lost Swiss support, the single currency slid to $1.1461, its weakest since November 2003. It last traded at $1.1567, down 0.52 percent. Against the yen, the dollar was up 1.23 percent at 117.59 yen.

On equity markets, MSCI's all-country world index gained 0.76 percent. The pan-European FTSEurofirst 300 index of leading regional companies closed up 0.99 percent at 1,407.17 points.

Swiss stocks sank again on concerns a stronger franc will hurt Swiss multinationals that depend on exports. The Swiss blue-chip index SMI closed down 6 percent.

Morgan Stanley estimated that 85 percent of Swiss company sales come from abroad.

The Dow Jones industrial average closed up 190.86 points, or 1.1 percent, at 17,511.57. The S&P 500 rose 26.75 points, or 1.34 percent, to 2,019.42 and the Nasdaq Composite added 63.56 points, or 1.39 percent, to 4,634.38.

US Treasuries prices fell after the strong consumer sentiment and tame inflation reports sparked profit-taking on recent gains.

The 10-year US Treasury note fell 15/32 in price, pushing the yield up to 1.8257 percent.

Brent crude futures for March delivery rose $1.90 to settle at $50.17 a barrel. US crude settled up $2.44 at $48.69 a barrel.

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Tags:  US  stock market  Europe  Nikkei  Swiss National Bank  

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Edition No. 5055 - This publication is a property of NEFIR S.A. -RNPI Nº 5343955 - Issn 1852 - 9224 - Te. 4349-1500 - San Juan 141 , (C1063ACY) CABA - Director Perdiodístico: Ricardo Daloia