Stocks around the world gained for a second straight day yesterday, boosted by upbeat global economic data, as investors await minutes of the Federal Reserve’s December meeting in which the US central bank raised interest rates.
The dollar retreated from a 14-year high against a basket of currencies and oil prices ticked higher on expectations that US crude inventories are falling.
MSCI’s world index, which tracks shares in 46 countries, rose 0.71 per cent to a three-week high.
The index was helped by a batch of rosy economic reports from Europe, and got a further boost after US stocks opened higher.
US stocks extended gains into the second trading day of the new year, supported by gains in consumer discretionary stocks.
Investors are waiting for the Federal Reserve to release the minutes of its December meeting in which it raised interest rates. Investors will now pore over the minutes, expected at 2pm ET (1900 UTC), to assess policymakers’ view on the economy and US president-elect Donald Trump’s incoming administration.
The Dow Jones Industrial Average rose 32.99 points, or 0.17 per cent, to 19,914.75, the S&P 500 gained 9.69 points, or 0.43 per cent, to 2,267.52 and the Nasdaq Composite added 34.53 points, or 0.64 per cent, to 5,463.61.
European shares edged down from a one-year high with retailers in focus after standout faller Next cut its profit guidance and cautioned on future trade. Europe’s broad FTSEurofirst 300 index fell 0.27 per cent to 1,440.67.
The dollar edged down from a 14-year high against a basket of currencies, with investors cautious about increasing bets on the greenback before getting fresh clues on the US economy and the timing of interest rate rises.
The dollar index – which measures the greenback against a basket of six major rivals – was down 0.58 percent to 102.61, having hit a peak of 103.82 on Tuesday.
Oil prices ticked higher on expectations that US crude inventories are falling and signs that oil producers will stick to agreed output cuts that took effect this week.
Brent crude was up 0.67 per cent at $55.84 a barrel, while US crude was up 0.65 per cent at $52.67.
In bond markets, US Treasury debt yields edged higher for a second straight day in quiet trading, continuing to benefit from increased market appetite for risk with the rise in stocks and oil prices, as well as an improving global economic environment.
The US 10-year note was down 3/32 in price to yield 2.463 per cent, compared with 2.454 per cent late on Tuesday. Gold touched a near-four week high helped by the retreating dollar and increased demand from major consumers China and India. Spot gold prices were up 0.49 per cent at $1,164.45.