US stocks rose along with Treasury yields yesterday, the last day of a choppy trading week, as investors awaited Donald Trump’s Presidential inauguration later in the day.
The dollar, which has lost some of its momentum in recent weeks, was off 0.03 per cent against six major currencies.
There has been a pause in the post-election market rally in risky assets such as equities amid questions over how Trump’s administration will carry out ambitious campaign promises of lower taxes, more government spending and looser regulations.
The MSCI all world stock index was up modestly by 0.38 per cent but was poised for a weekly decline.
Caution ahead of the former reality TV star’s impending inauguration speech offset better-than-expected economic data from China and comments from Federal Reserve Chair Janet Yellen, in which she sounded less hawkish than the previous day.
Tens of thousands of law enforcement officers and miles of barriers were in place in Washington DC as it braced for hundreds of thousands of people planning to celebrate or protest the inauguration of Mr Trump.
At 10.39am ET, the Dow Jones Industrial Average was up 88.02 points, or 0.45 per cent, at 19,820.42, the S&P 500 gained 9.9 points, or 0.44 per cent, to 2,273.59 and the Nasdaq Composite added 22.83 points, or 0.41 per cent, to 5,562.91.
The benchmark S&P 500 was on track to end the week down slightly, and both the Dow and Nasdaq were each set for weekly declines.
The S&P 500 has fallen a median 2.7 per cent in the month after each new president has taken the keys to the White House since Herbert Hoover did so in January 1929, according to Reuters analysis.
Benchmark 10-year notes US10YT=RR fell 7/32 in price to yield 2.48 per cent, up from 2.46 per cent late on Thursday and a low of 2.31 per cent on Tuesday. New Treasury supply to finance an expected bump up in government spending may drag further on bond prices and send yields higher.
European stocks were little changed, up a tad by 0.16 per cent, reversing earlier losses amid caution ahead of Trump’s inauguration.
However, Europe’s benchmark index was poised for its worst week since early December.
Spot gold, on track for a fourth straight week of gains, fell 0.04 per cent yesterday to $1,204.3 per ounce.
Oil prices rose for the second day in a row on expectations a weekend meeting of the world’s top oil producers would demonstrate compliance to a global output cut deal.
Brent crude , the international benchmark, rose 2 per cent to $55.30. US West Texas Intermediate (WTI) crude oil futures were trading up 2.3 per cent at $52.57 per barrel.