Reuters: US Dollar Report: GLOBAL MARKETS-U.S. stocks resume rise, dollar holds firm

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GLOBAL MARKETS-U.S. stocks resume rise, dollar holds firm May 14th 2013, 16:02 Tue May 14, 2013 12:02pm EDT * Wall Street shares power higher on steady growth outlook * S&P 500, Dow rise to record intraday highs * Dollar index edge up as yen weakens further * Oil prices dip; gold recovers from recent losses By Richard Leong NEW YORK, May 14 (Reuters) - Wall Street stocks rose on Tuesday on hopes steady U.S. growth will extend their stellar run, while the strengthening dollar curbed the appetite for oil and gold. Investors resumed purchases of stocks and other higher-return assets, reducing their holdings of safe-haven U.S. and German government bonds. The rise in global interest rates was mitigated by a weaker-than-expected report on German investor sentiment due to the poor outlook on the region's economy. "People realize the world is not melting down. Growth isn't surging either, but it's growth and the market is adapting to that," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois. While worries about another spring "swoon" might have receded before the strong April U.S. payrolls data, the outlook on worldwide economic growth remained lukewarm. Mohamed El-Erian, chief executive of PIMCO, which manages the world's largest bond mutual fund, said in the firm's outlook for the next three to five years that U.S. economic growth will be "much greater" than 2 percent, while China will maintain growth in the range of 6 to 7.5 percent. In late morning trading, the Dow Jones industrial average was up 82.06 points, or 0.54 percent, at 15,173.74. The Standard & Poor's 500 Index was up 14.05 points, or 0.86 percent, at 1,647.82. The Nasdaq Composite Index was up 26.00 points, or 0.76 percent, at 3,464.79. Europe's top shares on the FTSEurofirst 300 were up 0.36 percent at 1,235.49, erasing early losses on the disappointing data from Germany's ZEW think tank report. U.S. and European equity gains lifted the MSCI global index to 375.79, up 0.42 percent on the day. As the Dow and S&P 500 index posted record intraday peaks, the dollar held steady versus a basket of major currencies, hovering near a five-week high. The greenback retested its 4-1/2-year high against the yen and last traded at 102.05 yen, up 0.2 percent on the day. The dollar's rise was capped by a steady euro, which was last at $1.2977. The dollar index was last up 0.1 percent at 83.377. Tuesday's pause in the dollar's recent run-up allowed gold to find a firmer footing after three days of losses and slowed the drop in oil prices . Brent crude oil edged down toward $102 per barrel as traders were caught between hopes of a revival in global economic growth and evidence of ample supply stocks from the West's energy watchdog, the International Energy Agency. Spot gold prices were up 0.2 percent at 1,432.86 an ounce. In the bond market, the yield on benchmark 10-year Treasury notes was little changed at 1.9242 percent, while German Bund futures were down 20 basis points at 144.68. Link this Share this Digg this Email Reprints

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