Dollar Climbs as Fed Officials Say April Rate Increase Possible

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The dollar advanced for a second day as two Federal Reserve officials indicated that the central bank may raise interest rates as soon as next month, bolstering the appeal of assets denominated in the U.S. currency.

The greenback climbed versus most of its major peers as Atlanta Fed President Dennis Lockhart and San Francisco Fed chief John Williams said recent economic data may justify additional policy tightening after raising rates in December for the first time in almost a decade. The dollar rose from near a nine-month low reached last week after the central bank refrained from lifting borrowing costs at its March meeting and lowered its projections for the rest of the year.

The Bloomberg Dollar Spot Index, which tracks the currency versus 10 peers, gained 0.3 percent to 1,189.65 as of 5 p.m. in New York. The greenback added 0.3 percent to $1.1241 per euro and 0.4 percent to 111.95 yen.

Source: Bloomberg

Oil futures settle higher as April WTI contracts expire

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Oil futures gained on Monday, recouping much of their losses from late last week as the April West Texas Intermediate crude contracts expired.

April WTI crude rose 47 cents, or 1.2%, to settle at $39.91 a barrel on the New York Mercantile Exchange. The May contract which is now the front-month contract, tacked on 38 cents, or 0.9%, to end at $41.52 a barrel.

Source: MarketWatch

Hong Kong shares inch up as mainland market gains continue

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Hong Kong shares edged up on Monday after mainland markets were buoyed by an announcement that the state margin lender would resume some of its short-term lending business and cut borrowing costs for brokerages.

The Hang Seng index rose 0.1 percent, to 20,684.15, while the China Enterprises Index gained 0.5 percent, to 8,928.65 points.

Total trading volume of companies included in the HSI index was 1.6 billion shares.

U.S. Stocks Close Little Changed at 2016 High Amid 5-Week Rally

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U.S. stocks edged higher, with the Dow Jones Industrial Average extending its longest winning streak since October, while investors assessed a rally that turned equities positive for the year.

Commodity producers slipped and banks were little changed after bolstering the rebound from the worst start to a year ever. Deal activity helped buoy shares as Valspar Corp. surged after Sherwin-Williams Co. agreed to buy the company for about $9.3 billion. Starwood Hotels & Resorts Worldwide Inc. rallied after accepting an improved bid from Marriott International Inc. Valeant Pharmaceuticals International Inc. added 7.6 percent after a board and management shakeup.

The Standard & Poor’s 500 Index rose 0.1 percent to 2,051.55 at 4 p.m. in New York, the highest since Dec. 30 after erasing losses for the year on Friday. The Dow also added 0.1 percent.

The S&P 500 staged one of the biggest turnarounds in history amid rallying crude prices and optimism that monetary policy will continue to support global growth. The gauge last week erased a loss that had reached as much as 11 percent, spurred by a slower pace of rate increases signaled by the Federal Reserve. Equities are heading for the first monthly increase in four, after worries over China’s slowdown and routs in oil and banks dragged them to their lowest levels since 2014.

Source: Bloomberg

European stocks extend last week drop driven by miners, energy

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European stocks closed lower Monday, swaying between small gains and losses and tracking moves in the U.S. dollar and oil prices.

The Stoxx Europe 600 finished down a narrow 0.3% at 340.82.

In the commodities space, mining shares were hurt, with Sweden’s Boliden AB losing 5% and platinum producer Anglo American off 1.1%. Industrial miner ArcelorMittal SA gave up 4%.

Oil prices traded higher after showing choppy action earlier, with pressure coming after data on Friday showed the first increase in the number of active U.S. oil-drilling rigs in 13 weeks.

Shares of oil producer Tullow Oil PLC closed down 1.4% and oil-field services provider Seadrill Ltd. shed 6.3%.

Elsewhere in the European market, Telecom Italia SpA shares climbed 3.1% after the company said it is set to part ways from Chief Executive Marco Patuano. That follows clashes over strategy after France’s Vivendi SA took a near 25% stake last year.

Indexes: Germany’s DAX 30 closed down less than 0.1% at 9,948.64. France’s CAC 40 shed 0.8% to 4,427.80, while the U.K’s FTSE 100 finished 0.1% lower at 6,148.58.

Source: Marketwatch