Reuters: US Dollar Report: REFILE-GLOBAL MARKETS-Stocks firm, oil rebounds on U.S. factory data

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REFILE-GLOBAL MARKETS-Stocks firm, oil rebounds on U.S. factory data Apr 2nd 2012, 15:20 Mon Apr 2, 2012 11:20am EDT * Stocks, crude oil up on U.S. manufacturing data * Stronger data lifts sentiment after weak European reading * U.S. government trim some gains on U.S. ISM report * Dollar stronger after weak European PMI reports By Herbert Lash NEW YORK, April 2 (Reuters) - Global equity markets edged up and crude oil rebounded on Monday after a better-than-expected reading of business activity in the U.S. manufacturing sector lifted investor sentiment that had soured a bit on a earlier spate of weak European factory data. Stocks on Wall Street opened lower but mostly rebounded after data showed the pace of growth in the U.S. manufacturing sector picked up a tad in March, The Institute for Supply Management said its index of national factory activity rose to 53.4 from 52.4 in February, topping economists' expectations of 53.0. "This report seems to agree with the employment data showing that more people are going back to work," said Sam Wardwell, investment strategist at Pioneer Investments in Boston. "The stock market is telling us that the economy is getting stronger. Jobless claims are telling us that the economy is getting stronger. The ISM is telling us that the economy is getting stronger." Crude oil erased losses to turn higher on the U.S. ISM report, and European equities extended gains, after a brief downturn, on the U.S. factory data. The factory activity contraction in Europe outweighed a brighter manufacturing outlook in China, South Korea and Taiwan, three of Asia's leading exporters. The euro fell 0.5 percent against the dollar to $1.3358, after hitting a session low of $1.3281. The euro slipped 1.3 percent to 109.35 yen. China's official PMI hit an 11-month high, but a separate private survey from HSBC 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, D.C. "Strong U.S. data this week is likely to see the dollar strengthen on rising yield appeal." The Dow Jones industrial average was down 2.31 points, or 0.02 percent, at 13,209.73. The Standard & Poor's 500 Index was up 3.08 points, or 0.22 percent, at 1,411.55. The Nasdaq Composite Index was up 7.60 points, or 0.25 percent, at 3,099.17. Brent and U.S. crude futures turned higher on the U.S. manufacturing data. Brent crude was up 21 cents at $123.09 a barrel, while U.S. crude was up 49 cents at $103.51. Treasuries prices trimmed gains after reports showed U.S. manufacturing expanded in March but construction spending fell in February. Benchmark 10-year notes, up 10/32 before the reports came out, were up 8/32 afterwards, their yields at 2.19 percent. Brent crude slipped 38 cents to $122.50 a barrel. It ended the first quarter up 14.3 percent, its biggest quarterly rise since the first quarter of 2011. U.S. crude futures fell 33 cents to $102.69 a barrel. The dollar trimmed losses against the yen. The dollar was last at 82.32 yen, compared with 82.16 yen prior to the data. But it was still down 0.6 percent on the day. "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. Link this Share this Digg this Email Reprints

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