Monday , December 11 2017

Dow tops 22,000 as Apple rallies, euro strengthens

Trader a Wall Street. REUTERS/Brendan McDermid

Bloomberg

The Dow Jones Industrial Average rose past 22,000 for the first time as Apple Inc. pushed to a record, while renewed strength in the euro dragged down European equities. Oil fluctuated after retreating from its brief rise above $50 a barrel.
The Nasdaq 100 Index jumped as Apple’s market cap rose above $800 billion after its sales forecast revived optimism over the iPhone. Rio Tinto Plc led the drop among basic resources shares after first-half profit missed estimates. The euro, coming off its best month since March 2016, reached a new 2 1/2-year high against the ailing dollar. Oil traded near $49 a barrel as US crude stockpiles expanded, while copper dropped a second day.
The common currency’s longest rally since 2013 has been sustained by interest-rate differentials and broad dollar weakness as investors lost faith in Donald Trump’s spending plans amid an administration in disarray. With the dollar index near a two-year low, the options market shows that traders are gearing up for more euro strength, with demand growing for calls, which give the right to buy. The currency’s advance has pushed European earnings revisions into negative territory, according to Credit Suisse Group AG.
While most company results this quarter are supporting the case for a firm global economy that’s propelling equity gauges to new highs, questions remain about how long the rally can run amid stretched valuations and mixed US data. Terminal users can read more in our Markets Blog here.
Brazil’s Congress votes on Wednesday on whether to put President Michel Temer on trial. Bank of England Governor Mark Carney may signal a more hawkish tone at its quarterly Inflation Report on Thursday. The central bank will likely keep rates on hold. US jobs data on Friday
will probably show employers added about 180,000 workers in July.
The S&P 500 Index rose 0.1 percent as of 9:31 a.m. in New York. The Stoxx Europe 600 Index dipped 0.2 percent. The UK’s FTSE 100 Index sank 0.4 percent. Germany’s DAX Index decreased 0.2 percent. The MSCI
All-Country World Index
declined 0.1 percent.
The Bloomberg Dollar Spot Index gained less than 0.05 percent. The euro climbed 0.2 percent to $1.1829 after reaching the strongest level since January 2015 earlier. The British pound advanced 0.2 percent to $1.3227,
the strongest in more than
10 months.
The yield on 10-year Treasuries advanced two basis points to 2.27 percent. Britain’s 10-year yield clim-bed two basis points to 1.235 percent, the highest in a week. Germany’s 10-year yield gained less than one basis point to 0.49 percent.
West Texas Intermediate crude declined less than 0.05 percent to $49.15 a barrel. Gold fell 0.2 percent to $1,266.57 an ounce, the biggest fall in a week. Copper fell 0.2 percent to $
2.88 a pound.

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