Wall Street and European stocks edged ahead yesterday but remained en route to a losing week while US Treasury debt prices jumped on government data indicating US economic growth was slowing.
Brent oil fell below $50 a barrel after Thursday’s spike on Saudi-led air attacks in Yemen, and the dollar was down.
Investors awaited a speech on monetary policy yesterday by Federal Reserve Chair Janet Yellen was expected to contain hints on when US interest rates may be increased.
Wall Street's key indexes were modestly ahead after the Commerce Department said US gross domestic product expanded at a 2.2 per cent annual rate in the fourth quarter and after-tax corporate profits had their biggest drop since early 2011. The economy grew at a five5 per cent rate in the third quarter.
The Dow Jones industrial average rose 9.81 points, or 0.06 per cent, to 17,688.04, the S&P 500 was up 2.62 points, or 0.13 per cent, to 2,058.77 and the Nasdaq Composite added 14.03 points, or 0.29 per cent, to 4,877.39.
Healthcare stocks helped buoy the indexes that have been on a four-session losing streak, with biotech stocks bouncing 2.3 per cent higher after suffering a seven per cent drop in the prior four sessions. Energy was the worst performing sector as crude prices resumed their decline.
European shares had their biggest weekly fall of the year but were ahead for the day.
The pan European FTSEurofirst 300 of top companies ended up 0.22 per cent for the day. For the week the FTSEurofirst 300 was down 2.1 per cent, but that was only a dent in its nearly 15 per cent gains for the past three months.
Asian shares dropped overnight.
In New York, Treasury yields fell on the GDP data, which reinforced opinions the Fed would push back the launch of its first interest rate hikes since 2006. Benchmark 10-year notes were last up 13/32 in price to yield 1.96 per cent, down from 2.00 per cent late on Thursday.
Yellen’s scheduled speech in San Francisco was also curbing trading in the dollar, which posted minor gains against the euro and dipped against the yen and Swiss franc. The dollar index, which tracks the greenback versus a basket of six currencies, fell 0.192 points or 0.2 per cent, to 97.244. The yen was last up 0.03 per cent, at $119.2100 and the euro at $1.0908, up 0.23 per cent.
Oil investors grew less worried about the escalating conflict in Yemen and focused on new supplies possibly coming to market after an Iranian nuclear deal.
US crude was down three per cent at $49.92 a barrel after jumping 4.5 per cent, while Brent was down 2.35 per cent at $57.80.