Left Menu
Development News Edition

GLOBAL MARKETS-Oil surges on tanker attacks; stocks rise on Fed rate cut expectations

Reuters | Updated: 14-06-2019 01:47 IST | Created: 14-06-2019 01:47 IST
GLOBAL MARKETS-Oil surges on tanker attacks; stocks rise on Fed rate cut expectations
Oil futures rose on Thursday after attacks on two tankers off the coast of Iran, while the U.S. Treasury yield curve steepened and stocks rose following economic data seen as strengthening the case for the Federal Reserve to cut interest rates this year.

Wall Street's major stock indexes closed higher after falling for two days as investors regained their appetite for risk assets. The number of Americans applying for unemployment benefits unexpectedly rose last week, potentially adding to concerns about the U.S. labor market after May job growth slowed. Other data showed import prices fell by the most in five months in May in the latest indication of muted inflation pressures, adding to expectations the Fed will cut rates this year.

"There are still concerns over geopolitical risk," said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey. "The market is waiting to hear from the Fed ... and whether they will deviate at all from their latest stance, and I call it an active dovish position, to see if they continue to lay the groundwork for a rate cut perhaps later in the summer."

The S&P pared gains slightly after U.S. Secretary of State Mike Pompeo said, without offering concrete evidence, the United States believed Iran was responsible for tanker attacks in the Gulf of Oman. The Dow Jones Industrial Average rose 101.94 points, or 0.39%, to 26,106.77, the S&P 500 gained 11.8 points, or 0.41%, to 2,891.64 and the Nasdaq Composite added 44.41 points, or 0.57%, to 7,837.13.

The pan-European STOXX 600 index rose 0.16% and MSCI's gauge of stocks across the globe gained 0.06%. After falling hard on Wednesday, oil futures rebounded sharply on the news of the tanker attacks near Iran and the Strait of Hormuz, a key passage for seaborne oil cargoes.

U.S. crude settled up 2.23% at $52.28 while Brent rose $1.14 to $61.31. YIELD CURVE STEEPENS

Increased expectations of Fed rate cuts pulled short-dated U.S. Treasury yields lower on Thursday, steepening the yield curve ahead of Friday's retail sales data and the Fed's meeting next week. Benchmark 10-year notes last rose 9/32 in price to yield 2.0979%, from 2.127% late on Wednesday.

In currencies, the U.S. dollar was little changed against the euro as investors were slow to take large positions before the Fed meeting and the G20 summit later in June when U.S. and China leaders are expected to discuss trade. The dollar index, which tracks the greenback against six major currencies, rose 0.05%, with the euro down 0.12% to $1.1273.

The Japanese yen strengthened 0.11% versus the greenback, to 108.40 per dollar, while sterling was last trading at $1.2675, down 0.09% on the day. Gold prices edged higher on expectations for a U.S. rate cut after the soft inflation data, although the uptick in equities capped gains.

Spot gold added 0.6% to $1,341.37 an ounce. (Reporting by Sinead Carew Additional reporting by Karen Brettell and Kate Duguid in New York, Marc Jones and Tommy Wilkes in London, Hideyuki Sano in Tokyo; Editing by Leslie Adler and Tom Brown)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.


TRENDING

OPINION / BLOG / INTERVIEW

Education post-coronavirus: Schools to rush for more digitalization

Digital education would undoubtedly boom in the post-coronavirus world, supported by educational institutions that have discovered its efficiency during the crisis, but it is still not expected to outshine traditional classroom learning....

Public health care post-COVID 19 to go for revamping, not rebooting

Until now, the economies used to classify healthcare sector under social expenditure. However, the devastation caused by COVID 19 pandemic has upgraded public healthcare on topmost priority and core economic activity for controlling future ...

Coronavirus lockdowns to speed up long-pending revamping of supply chains

With millions of production lines impacted, business disruptions to some extent are unavoidable and the lessons learned from this turbulence will leave an everlasting impact on both global and local levels of supply chains....

COVID 19 to catalyze the redefinition of urban planning and sustainability

Until now the urban planning was focused on mitigation to natural disastrous, climate change, pollution, chronic illness and lifestyle diseases. However, the global pandemic of novel coronavirus is going to change the whole narrative of urb...

Videos

Latest News

Zimbabwe returns to using foreign currencies ahead of coronavirus lockdown

Zimbabwe legalized the use of foreign currencies in domestic transactions on Sunday, less than a year after abandoning dollarisation, as the country readies for a 21-day lockdown to prevent the spread of coronavirus, starting at midnight.An...

Nigeria president orders lockdown in Lagos, Abuja over virus

Nigerias President Muhammadu Buhari on Sunday ordered the cessation of all movements for two weeks in largest city Lagos and capital Abuja to stop the spread of coronavirusAll citizens in these areas are to stay in their homes starting from...

3 more test positive for COVID-19 in Bengal, total count 21

Three more persons in West Bengal tested positive for COVID-19 on Sunday, taking the total number of such cases in the state to 21, an official said. One of them, a 52-year-old doctor at a city-based Army hospital, had recently returned fro...

Khattar orders sealing of Haryana borders to stop movement of migrant workers

Haryana Chief Minister Manohar Lal Khattar on Sunday directed deputy commissioners to completely seal all inter and intra-state borders to stop the movement of migrant workers during the nationwide lockdown, an official statement said. This...

Give Feedback