Reuters: US Dollar Report: GLOBAL MARKETS-Stocks, oil rally after US manufacturing data

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

GLOBAL MARKETS-Stocks, oil rally after US manufacturing data Apr 2nd 2012, 18:42 Mon Apr 2, 2012 2:42pm EDT * Stocks, crude oil rally on U.S. manufacturing data * Stronger data lifts sentiment after weak European reading * U.S. government debt trims some gains on U.S. ISM report * Dollar gains after weak European PMI reports By Herbert Lash NEW YORK, April 2 (Reuters) - Global equity markets gained, pushing U.S. stocks to fresh four-year highs, and crude oil rebounded on Monday after better-than-expected U.S. manufacturing news boosted investor sentiment, which had soured a bit on a spate of weak European factory data. Stocks on Wall Street opened slightly lower but the three major U.S. stock indexes advanced broadly following data from the Institute for Supply Management that showed the pace of growth in the U.S. manufacturing sector picked up a tad in March. Energy and basic materials stocks led an equity rally that pushed the broad-based S&P 500 to highs last seen in May 2008, while the Dow notched highs last seen in December 2007. The Institute for Supply Management said its index of U.S. factory activity rose to 53.4 in March from 52.4 in February, topping economists' consensus forecast for a reading of 53.0. The upbeat U.S. data and an 11-month high in the official Chinese purchasing manufacturing index lifted European shares to their biggest daily gain in three weeks. In Europe, the Stoxx 600 Basic Resources share index rose 2.3 percent, with UK-listed miners Fresnillo, Rio Tinto and BHP Billiton up between 3 percent and 4 percent. In the United States, an S&P index of materials stocks rose 1.5 percent. "The market is telling you it believes the (U.S.) economy has turned around, it has made that corner, it is clearly moving higher - especially compared to Europe and parts of Asia," said Ken Polcari, managing director of ICAP Equities in New York. The Dow Jones industrial average gained 64.48 points, or 0.49 percent, to 13,276.52. The Standard & Poor's 500 Index rose 11.57 points, or 0.82 percent, to 1,420.04. The Nasdaq Composite Index added 26.81 points, or 0.87 percent, to 3118.38. The FTSEurofirst 300 Index of top regional shares closed 1.5 percent higher at 1,085.04. The MSCI all-country world equity index climbed 1 percent. Crude oil erased earlier losses to turn higher on the U.S. ISM report. Oil, like other assets viewed as risky, traded lower earlier in the session as Europe's contraction in factory activity outweighed a brighter manufacturing outlook in China, South Korea and Taiwan, three of Asia's leading exporters. China's official PMI was tempered by a separate private survey from HSBC, which painted a gloomier picture. "PMIs out of Europe are another reminder of the extent economies have gone down," said Omer Esiner, chief market analyst with Commonwealth Foreign Exchange in Washington. "Strong U.S. data this week is likely to see the dollar strengthen on rising yield appeal." The dollar trimmed losses against the yen, but the euro extended losses against the yen. The euro fell 0.3 percent against the dollar to $1.3324, after hitting a session low of $1.3281. The euro slipped 1.3 percent to 109.50 yen. "It gives more credence to the narrative we've been seeing over the past couple of weeks, that stronger U.S. data will make it less likely the Fed will participate in QE3," said John Doyle, currency strategist at Tempus Consulting in Washington. Brent and U.S. crude futures turned higher on the U.S. manufacturing data. Brent crude was up $2.28 at $125.16 a barrel, while U.S. crude was up $2.20 at $105.22. U.S. Treasuries' prices trimmed gains after reports showed U.S. manufacturing expanded in March, while construction spending fell in February. The benchmark 10-year U.S. Treasury note rose 16/32 in price to yield 2.19 percent. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions