Dollar weakens against euro, yen after Fed minutes

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The dollar edged lower against the euro and yen Wednesday after minutes from the Federal Reserve’s January meeting suggested that the central bank will leave interest rates on hold at its March meeting.

The ICE U.S. dollar a measure of the buck’s strength against a basket of six rival currencies, was down 0.1% at 96.8270. The dollar weakened to ¥113.88, from ¥114.23 late Tuesday; the euro strengthened to $1.1148, compared with $1.1128.

The dollar edged lower after the release while U.S. stocks edged higher. The moves weren’t necessarily a reaction to the minutes, as Clemons noted that there was “a lot of noise in the market” on Wednesday.

In other currency trading, the dollar weakened against many resource-linked currencies–including the Canadian dollar Norwegian krone and Russian ruble as crude oil prices rebounded.

Meanwhile, the Mexican peso was on track for its largest daily gain against the dollar in years after a surprise interest-rate hike.

In the U.K., the pound weakened to $1.4263 Wednesday, from $1.4293 Tuesday, after a mixed batch of labor-market data.

Source: MarketWatch

Oil Futures End Sharply Higher After Iran Comments

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Oil futures ended sharply higher Wednesday, rallying despite a mixed message from Iran's oil minister over a proposed production freeze by major producers.

West Texas Intermediate crude for March delivery jumped $1.62, or 5.6%, to end at $30.66 a barrel. Iran's oil minister didn't commit to a production freeze after a meeting with some Organization of the Petroleum Exporting Countries counterparts, but praised a proposed freeze tentatively agreed upon a day earlier by Saudi Arabia and Russia.

Source: MarketWatch

Hong Kong Stock Rally Peters Out as Energy Shares Fall (Riview)

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Hong Kong stocks lost ground on Wednesday as a two-day solid rally petered out, thanks in part to slumping energy shares that dragged down the market.

The Hang Seng index fell 1.0 percent, to 18,924.57, while the China Enterprises Index lost 1.2 percent, to 7,928.76 points.

An index tracking energy stocks tanked 3.2 percent, as investors, who had bet on a cut in global oil production, gave a lukewarm response to a potential deal between Saudi Arabia and Russia to freeze oil output at January levels.

Source Reuters

U.S. Stocks Rally as Hardest-Hit Shares in 2016 Continue Rebound

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U.S. stocks rallied, with the Dow Jones Industrial Average rising more than 250 points, as the year’s most-battered shares continued to recover and energy shares climbed with oil prices.

The Standard & Poor’s 500 Index rose 1.6 percent to 1,926.70 at 4 p.m. in New York, capping its first three-day advance this year and closing at a two-week high. West Texas Intermediate crude futures surged, briefly topped $31 a barrel.

Equity gains are coming virtually as fast as the losses that sent the S&P 500 to its worst start to any year, with almost half of 2016’s decline made up in three days. The rally today occurred as oil climbed more than 5 percent, Federal Reserve officials expressed caution on the economy and data on manufacturing was better than forecast.

This year’s most beaten-down industries have bolstered the gains since the main U.S. equity index closed at a 22-month low last Thursday, amid a sense that the selling was overdone. Banks in the benchmark are up 9.7 percent in the last three sessions, recovering from the lowest level since 2013, while retailers have surged 7.3 percent, rebounding from a 16 percent drop to begin 2016.

Source: Bloomberg

Stocks Rally With Oil as Risk Assets Rebound; Treasuries Retreat

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Stocks rallied as investors piled into risk assets, sending emerging-market currencies and shares higher after a weakening yuan triggered losses in Asian markets. Crude rose to above $30 a barrel.

The Standard & Poor’s 500 Index climbed for a third day, headed for its longest winning streak of the year, as the benchmark continued to rebound from the lowest level in 22 months last week. Shares in Europe rose as companies including Credit Agricole SA reported better-than-estimated results. This year’s beaten-down sectors -- banks, energy and consumer shares -- led a recovery after global equities sank into a bear market last week. Emerging market currencies and stocks also gained, as oil prices extended a rebound in afternoon trading. Treasuries retreated as haven demand cooled.

Global equities tumbled into a bear market last week, after attempts by central banks to quell volatility this year have had mixed success as investors grappled with concern China’s slowdown will deepen. Minutes of the Federal Reserve’s most recent meeting, where officials indicated they were monitoring turmoil in markets, are due Wednesday. Chair Janet Yellen has also indicated the global turbulence may delay further tightening of U.S. monetary policy.

The S&P 500 added 1.7 percent to 1,927.50 at 1:04 p.m. in New York. Index futures held gains even after a report showed new-home construction cooled in January. Separate data showed manufacturing output rose last month by the most since July 2015, while wholesale prices in the U.S. unexpectedly increased in January.

Source: Bloomberg