Stocks advance with dollar as treasuries retreat

U.S. stocks rose with the dollar, while Treasuries fell as investors looked past a U.S. military strike in Syria and worse-than-forecast hiring data.

The S&P 500 Index pushed to highs of the day in afternoon trading, while the dollar headed for its best week in two months. Comments from the Federal Reserve Bank of New York president bolstered speculation the central bank won’t slow the pace of rate increases as it moves to trim its balance sheet.

The 10-year Treasury yield topped 2.35 percent after falling as low as 2.28 percent after a weak jobs report and the first military strike undertaken by President Donald Trump’s administration.

Financial markets showed resilience in the face of weaker- than-forecast hiring in the world’s largest economy and a ratcheting up of geopolitical tensions, with demand for haven assets abating. Volatility across equity markets came down from highs. Dudley’s comments come two days after Fed meeting minutes signaled officials discussed the timing for shrinking the central bank’s balance sheet as it tightens monetary policy.

The S&P 500 added 0.2 percent to 2,361. Futures fell as much as 0.7 percent in the hour after Thursday night’s attack in Syria.

The CBOE Volatility Index rose 5.8 percent to 13.01.

The Stoxx Europe 600 Index added 0.1 percent. Volatility measures from Hong Kong to Europe increased.

The Bloomberg Dollar Spot Index advanced 0.3 percent, rebounding from earlier losses as it heads for a weekly advance of 0.5 percent.

The ruble dropped 1.1 percent. The currency has been trading near the highest since July 2015. President Vladimir Putin believes the U.S. airstrikes caused “considerable damage” to relations with Russia, a Kremlin spokesman said.

The yen was little changed at 110.779 after paring gains of as much as 0.6 percent.
The euro slipped 0.3 percent, the British pound dropped 0.6 percent.

South Africa’s rand touched the weakest level this year after Fitch Ratings became the second company to cut the country’s credit assessment to junk. It traded at 13.799 per dollar, lower by 0.3 percent.

The yield on 10-year Treasuries rose two basis points to 2.36 percent after falling as low as 2.28 percent.

Core European government bonds opened higher amid the broad flight-to-quality move after the Syria strikes. The yield on the 10-year German benchmark fell three basis points to 0.24 percent.

West Texas Intermediate crude added 1 percent to $52.21, after touching the highest in a month. Oil is up almost 3 percent for the week.

Gold climbed 1.4 percent to $1,2671.20, the highest since November, following two days of declines.

Japan’s Topix index climbed 0.7 percent, rebounding after erasing a rally of as much as 1.2 percent during the morning session. The Shanghai Composite Index rose 0.2 percent, giving it a 2 percent gain for the holiday-shortened week.

източник: Bloomberg

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