Equity markets inched ahead yesterday, with investors brushing aside mixed economic data in Europe and the United States, while the dollar slipped after a three-day rally and US Treasury yields declined.
Oil prices rallied almost three per cent, with Brent crude topping $66 a barrel on signs a global supply glut may be starting to ease.
Wall Street’s benchmark S&P 500 index, which has posted a string of highs recently, was near a new record ahead of a speech today by Federal Reserve Chair Janet Yellen.
Market participants await her comments for indications of how soon the Fed is prepared to raise US interest rates from near zero.
Fed officials believe it would be premature to raise rates next month even though most feel the economy is set to rebound from a dismal start to the year, according to minutes from their April policy meeting.
Investors shrugged off weaker-than-expected US manufacturing and other data, including a rise in weekly claims for state unemployment benefits reported by the US Labor Department.
The Dow Jones industrial average was last up 17.38 points, or 0.1 per cent, to 18,302.78, the S&P 500 was ahead 6.28 points, or 0.3 per cent, to 2,132.13 and the Nasdaq Composite advanced 19.52 points, or 0.38 per cent, to 5,091.26.
US Treasuries yields declined on the disappointing data, which revived worries among bond investors about the economy and whether the Fed would raise interest rates later this year.
Benchmark 10-year Treasuries were up 16/32 in price with a yield of 2.193 per cent, down six basis points from Wednesday’s close.
The dollar index was down 0.24 per cent, as the euro rose against the dollar. The euro last traded at $1.1134, a gain of 0.40 per cent. Sterling was ahead nearly 1 per cent against the dollar to $1.5678.
European share indexes closed mostly ahead, recovering from session lows after data pointed to contrasting fortunes in major eurozone economies.
German private-sector growth slowed again in May, and France extended its timid recovery.
The pan-European FTSEurofirst 300 index ended up 0.4 per cent after having traded as much as 0.4 per cent lower. France’s CAC was up 0.3 per cent.
Eurozone leaders were scheduled to meet in Latvia, with Greek premier Alexis Tsipras hoping to secure a broad outline of a cash-for-reforms deal to stave off a default.
Oil rose for a second day and Brent crude reached more than $66 a barrel, supported further by fighting in Iraq.
US crude neared $61 a barrel and was last up $1.44 at $60.39.
Brent was last at $66.20, up 2.5 per cent, after touching a high of $66.88.
Gold held in a range near $1,200 an ounce.