Breaking News

Global stocks, dollar rebound on Chinese, U.S. data

Stock MarketsOct 14, 2016 11:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. An investor sits in front of an electronic board showing stock information at a brokerage house in Nanjing

By Herbert Lash

NEW YORK (Reuters) - Global stocks and the dollar rebounded on Friday from losses a day earlier, buoyed by a surprising rise in Chinese producer prices and strong U.S. economic data that bolstered expectations the Federal Reserve would raise interest rates in December.

The dollar was on track for its largest weekly increase in more than three months, with rebounding U.S. retail sales and a broad rise in producer prices last month indicating the economy regained momentum in the third quarter after a lackluster first-half.

U.S. producer prices rose in September to record their biggest year-on-year rise since December 2014, while retail sales gained 0.6 percent after a 0.2 percent decline in August.

"Observers are increasingly confident that December will finally bring the long-awaited interest rate hike," said Dennis de Jong, managing director at in Limassol, Cyprus.

The dollar index, which tracks the greenback against a basket of six major currencies, added 0.4 percent to 97.862 (DXY) and was up 1.3 percent for the week.

In China, September producer prices unexpectedly rose for the first time in nearly five years and consumer inflation also beat expectations, easing some concerns about the health of the world's second-biggest economy.

Disappointing Chinese trade data on Thursday had rattled investors and pushed global equity markets to three-month lows.

European shares tracked Asian markets higher and Wall Street jumped as better-than-expected results from JPMorgan and Citigroup lifted financial stocks.

Shares of JPMorgan (N:JPM), the biggest U.S. bank by assets, rose 0.77 percent after it beat forecasts for revenue and profit. Citigroup (N:C) rose 1.18 percent after earnings fell less than expected.

In Europe, the pan-regional FTSEurofirst 300 (FTEU3) index rose 1.55 percent to 1,344.44, while MSCI's all-country world index (MIWD00000PUS) of equity markets in 46 countries rose 0.77 percent.

The Dow Jones industrial average (DJI) rose 141.07 points, or 0.78 percent, to 18,240.01. The S&P 500 (SPX) gained 14.08 points, or 0.66 percent, to 2,146.63 and the Nasdaq Composite (IXIC) added 37.96 points, or 0.73 percent, to 5,251.29.

Oil slipped below $52 a barrel, giving up earlier gains, as abundant crude supplies outweighed tighter U.S. fuel inventories and plans by the Organization of the Petroleum Exporting Countries to cut output.

"The fundamental backdrop is still bearish," said Commerzbank (DE:CBKG) analyst Carsten Fritsch. "Every increase is driven by speculation and optimism," rather than tighter supplies, he said.

Global benchmark Brent (LCOc1) was down 23 cents at $51.80 a barrel. U.S. crude (CLc1) slide 8 cents to $50.36 a barrel.

The gain in Chinese producer prices helped lift U.S. Treasury yields, with the benchmark 10-year note (US10YT=RR) down 8/32 in price to yield 1.7659 percent.

Rising U.S. Treasury yields, on the growing perception the U.S. Federal Reserve will raise interest rates in December, pushed euro zone government bond yields higher.

The benchmark 10-year German bund rose 2.1 basis points to 0.056 percent.

The dollar rose 0.63 percent to 104.31 yen, while the euro fell 0.45 percent to $1.1006 .

Global stocks, dollar rebound on Chinese, U.S. data

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email