U.S. Stocks Advance as Dollar, Treasuries Decline: Markets Wrap

Updated on
  • Ten-year yield gains following slide; West Texas crude rises
  • Copper touches highest in four years, gold also rallies
The Fed is "in the game" and that’s the biggest risk in 2018, says Rupert Watson, head of asset allocation at Mercer.

U.S. stocks rose amid thinned-out trading between holidays. The dollar touched its lowest level this month, while Treasury yields rose after Wednesday’s slide.

The S&P 500 Index closed higher for the second day amid trading nearly 40 percent below the 30-day average. The greenback dropped against all major peers on its way to the worst year in more than a decade. Ten-year Treasury yields advanced toward 2.43 percent after the biggest intraday slide since the start of December on Wednesday.

The euro was on track for the strongest close in three months after European stocks and core bonds fell. The Bloomberg Commodity Index extended its longest rising streak in more than 12 years as copper headed for its highest level since Sept. 2013. WTI crude rose toward $60 a barrel.

While the Federal Reserve’s three interest-rate hikes this year might have argued for higher U.S. yields and a stronger greenback, instead its low cap on its long-term estimated policy rate and muted inflation have proved to be stronger dynamics.

Meanwhile, bitcoin retreated again Thursday to near $14,000, extending a selloff that began last week, as South Korean regulators stepped up scrutiny of their citizens’ dealings with cryptocurrencies.

Terminal users can enjoy our live markets blog.

Among the key events remaining for investors this week:

  • Egypt decides on interest rates.

And here are the main moves in markets:

Stocks

  • The S&P 500 Index rose 0.2 percent to 2,687.52 as of 4:00 p.m. New York time.
  • The Dow Jones Industrial Average rose 0.3 percent to 24,837.51, another record close.
  • The Stoxx Europe 600 Index dipped 0.3 percent. 
  • The U.K.’s FTSE 100 Index was steady. 
  • Germany’s DAX Index decreased 0.7 percent. 

Currencies

  • The Bloomberg Dollar Spot Index sank 0.4 percent, touching the lowest in more than three weeks.
  • The euro advanced 0.5 percent to $1.1943, the strongest in almost 14 weeks. 
  • The British pound gained 0.3 percent to $1.3440. 
  • The Japanese yen rose 0.4 percent to 112.88 per dollar, the strongest in more than a week on the biggest increase in more than two weeks.

Bonds

  • The yield on 10-year Treasuries gained two basis points to 2.43 percent. 
  • Germany’s 10-year yield gained four basis points to 0.42 percent, the largest climb in more than a week. 
  • Britain’s 10-year yield rose less than one basis point to 1.176 percent.

Commodities

  • West Texas Intermediate crude advanced 0.5 percent to $59.91 a barrel. 
  • Gold gained 0.6 percent to $1,295.01 an ounce, hitting the highest since October.
  • Copper rose 0.7 percent to $3.31 a pound, reaching the highest in more than four years on its 16th consecutive advance.

— With assistance by Eddie Van Der Walt, and Kailey Leinz

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