Dollar Maintains Retreat on Fed Rate Outlook; Asia Futures Mixed

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The dollar held declines against the euro and the yen after weak manufacturing data stoked speculation the U.S. will push back the timing for higher interest rates. Oil was near a 2015 high and Asian stock futures were mixed.

The greenback was steady at $1.0677 per euro by 8:27 a.m. in Tokyo, and traded near a two-week low versus Japan’s currency. U.S. oil dropped 0.6 percent to $56.06 a barrel after surging 5.8 percent Wednesday. Copper futures added 0.3 percent. Futures on Australian and South Korean equity indexes signaled gains, while contracts on Chinese shares dropped in most recent trading. Netflix Inc. surged in extended U.S. trading.

U.S. industrial output slipped more than economists projected in March, with the Federal Reserve examining economic data to determine the best time to raise benchmark borrowing costs. Europe’s stock gauge returned to a record high after European Central Bank President Mario Draghi said asset purchases were helping the recovery and the program must be implemented in full. Australia reports employment data Thursday.

Source: Bloomberg

Gold Rebounds as New York Manufacturing Unexpectedly Contracts

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Gold futures rebounded after a gauge of manufacturing in New York state unexpectedly declined, boosting the precious metal’s appeal as a haven.

A surprise negative reading for the New York Federal Reserve Bank’s index added to recent signs of uneven U.S. expansion and eased concerns that the economy is strong enough for policy makers to start raising interest rates. The metal fell 2.5 percent last month on speculation that rates would climb, damping gold’s appeal because the commodity generally only offers returns through price gains.

Prices were little changed last quarter as investors weighed the outlook for monetary tightening in the U.S. against increased global stimulus. European Central Bank President Mario Draghi said Wednesday his 1.1-trillion-euro ($1.2 trillion) quantitative-easing program started in March will help to boost sagging inflation. The metal has historically been used as a hedge against higher consumer costs.

Gold futures for June delivery rose 0.7 percent to settle at $1,201.30 an ounce at 1:41 p.m. on the Comex in New York. On Tuesday, the price touched $1,183.50, the lowest for a most-active contract since April 1.

Source: Bloomberg

U.S. Stocks Rise Toward Records on Intel, Oil Gain; Dollar Drops

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U.S. stocks rose as Intel Corp. rallied on earnings and energy shares surged after oil reached the highest level this year. The dollar fell after a drop in manufacturing bolstered the case for continued stimulus.

The Standard & Poor’s 500 Index added 0.5 percent at 4 p.m. in New York, closing 0.5 percent below its all-time high. The Russell 2000 Index of small companies rose 0.8 percent to a record, while the Stoxx Europe 600 Index added 0.6 percent to extend its high. Ten-year German bunds set a record-low yield as Mario Draghi signaled he will stay the course with his bond-buying program. The dollar fell a second day versus the euro. Oil jumped 5.8 percent as U.S. crude supply gains eased.

Total U.S. industrial output fell more than projected in March, the latest sign a strong dollar and cheap oil are hurting American manufacturing as the Federal Reserve debates raising interest rates. Draghi, the European Central Bank President, said quantitative easing is helping the region’s economic recovery and the program must be implemented in full. Intel surged after its forecast for the second quarter exceeded some analysts’ projections, while energy shares rallied with crude.

Source : Bloomberg

U.S. Stocks Rise Amid Intel Forecast While Oil Reaches 2015 High

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U.S. stocks rose as Intel Corp. rallied on earnings, while Treasuries gained after a drop in manufacturing bolstered the case for continued stimulus. European bonds climbed and oil reached the highest level of the year.

The Standard & Poor’s 500 Index added 0.5 percent at 12:01 p.m. in New York, reaching within 0.5 percent of its all-time high. The Stoxx Europe 600 Index rose 0.6 percent to a record. The yield on 10-year Treasury notes fell a fourth day, while similar-maturity German bunds set a record-low yield as Mario Draghi signaled he will stay the course with his bond-buying program. The Shanghai Composite Index lost 1.2 percent after China’s economy grew at the slowest pace since 2009. Oil jumped 4.2 percent as U.S. crude supply gains eased.

Total U.S. industrial output fell more than projected in March, the latest sign a strong dollar and cheap oil are hurting American manufacturing as the Federal Reserve debates raising interest rates. Draghi, the European Central Bank President, said quantitative easing is helping the region’s economic recovery and the program must be implemented in full. Intel surged after its forecast for the second quarter exceeded some analysts’ projections.

Source: Bloomberg

Europe Stocks Extend Record as Draghi Says QE Will Stay Course

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European stocks rose with commodity shares after Mario Draghi said quantitative easing will continue until there’s sustained improvement in inflation.

The Stoxx Europe 600 Index added 0.6 percent to 414.06 at the close of trading, with gauges of miners and energy shares posting the biggest gains. The Stoxx 600 has surged 21 percent this year, with a weaker euro helping exporters, as the ECB began quantitative easing.

ECB President Draghi said the central bank’s monetary policy is helping the region’s economic recovery. While inflation may be very low or negative in the following months, it will pick up later this year, he said. The central bank earlier held key interest rates at record lows, matching economists’ forecasts.

ArcelorMittal and Glencore Plc added more than 1.8 percent, pushing miners up for a second day. Royal Dutch Shell Plc and Total SA rose at least 1.8 percent as oil climbed for a fifth day. Tullow Oil Plc jumped 8.7 percent after Goldman Sachs Group Inc. upgraded the shares and said mergers and acquisitions will drive the energy industry.

Source: Bloomberg