The dollar and global equity markets rebounded yesterday after three days of declines, spurred by strong US retail sales and declining jobless claims that signalled the US economy could weather weak oil prices and a likely interest rate hike next year.
US consumer spending advanced at a brisk clip in November as lower gasoline prices gave holiday shopping a boost and offered the latest sign of an economy still gathering momentum.
The dollar rose 1.29 per cent to 119.33 yen, reversing a three-day drop that started after the greenback hit a seven-year peak against the Japanese currency on Monday.
The euro fell 0.52 per cent to $1.2382.
The S&P 500 equity index has shed 2.4 per cent over the past three sessions, the benchmark’s worst run in two months, as tumbling oil prices weighed on the energy sector.
But crude’s weakness helped holiday spending, and retail sales data for November beat expectations.
The S&P retail index jumped 1.77 per cent, lifted by a two per cent climb by Home Depot to $100.89.
MSCI’s all-country world stock index rose 0.33 per cent to 416.14, while the FTSEurofirst 300 index of top European shares closed up 0.02 per cent at 1,359.11.
Most eurozone stock indexes turned higher in late trading in response to the US data. Worries about the upcoming Greek presidential elections and a slump in commodity prices had pushed regional shares lower over the past three days.
On Wall Street, the Dow Jones industrial average rose 191.03 points, or 1.09 per cent, to 17,724.18.
The S&P 500 gained 24.91 points, or 1.23 per cent, to 2,051.05 and the Nasdaq Composite added 63.30 points, or 1.35 per cent, to 4,747.33.
Brent crude moved higher after dipping below $64 a barrel on signs that ample supplies will be even more plentiful in 2015 following an Organization of the Crude Exporting Countries forecast.
Prices fell Wednesday after US crude inventories unexpectedly rose and Opec’s most influential voice, Saudi Arabia’s oil minister, shrugged off the need for an output cut.
North Sea Brent crude rebounded 21 cents to $64.45 a barrel after earlier slumping to a session low of $63.70.
US crude fell six cents to $60.88 a barrel.
Intermediate-dated US Treasuries weakened and the yield curve neared its flattest in six years after the US economic data.
Three-year notes fell 4/32 in price to yield 1.0610 per cent, up from 1.02 per cent late on Wednesday.
British 20- and 30-year government bond yields hit record lows as eurozone debt rallied on bets the European Central Bank was likely to resort to outright asset purchases.
Top-rated eurozone bond yields inched lower on Thursday after a lacklustre response by banks to the European Central Bank’s second round of long-term loans, improving the chances for more aggressive stimulus measures.