NEW YORK: The euro rose and world stocks rebounded on Friday, lifted by shares in energy and basic materials, as concerns about global growth were put on the back burner by investors who see further gains in this year's rally.
Commodity prices ticked higher on the belief a sell-off on Thursday -- in reaction to slower-than-expected manufacturing data fromChinaand the euro zone -- was overdone.
Copper rebounded from a two-week low the previous session, helped by a weaker dollar, falling inventories and an outlook for above-historical consumption levels byChile's Codelco, the world's top producer.
European shares trimmed losses and Wall Street rose on rebounding energy and material shares that had slumped on Thursday. Rising crude oil prices helped the energy sector.
The Dow Jones industrial average was up 37.16 points, or 0.28 percent, at 13,083.30. The Standard & Poor's 500 Index was up 3.96 points, or 0.28 percent, at 1,396.74. The Nasdaq Composite Index was down 0.68 points, or 0.02 percent, at 3,062.64.
Some investors are looking for a boost next week from quarter-end "window dressing," when fund managers drop poor-performing stocks and chase the better-performing ones.
"Overall, people feel good about stocks, so people want to jump in and buy on dips like we saw yesterday," said Michael Matousek, senior trader at US Global Investors Inc, which manages about $3 billion inSan Antonio,Texas. "They're afraid of missing the boat so they focus on things that have lagged."
An S&P index of energy shares rose 1 percent while the S&P materials index added 0.8 percent. Alcoa Inc rose 1.6 percent to $10.18, leading the Dow.
Earlier, stocks fell after the Commerce Department said sales of new single-family homes slipped 1.6 percent in February to a seasonally adjusted 313,000-unit annual rate. January's sales pace was revised down to 318,000 units from the previously reported 321,000 units.
USgovernment debt prices rose for the fourth day in a row, reversing more of last week's losses, as concerns about the economic picture inChinaandEuropecompeted with improvedUSemployment for investors' attention.
The benchmark 10-year US Treasury note was up 12/32 in price to yield 2.24 percent.
Some fear equity markets have gained to much in too short a time. The benchmark S&P 500 -- on track for its first weekly decline in six weeks -- has gained more than 10 percent so far this year and almost 30 percent since its October lows.
The MSCI world equity index rose 0.2 percent, while a measure of top European stocks slipped 0.01 percent and emerging markets added 0.2 percent.
The dollar has been supported by an improvingUSeconomic landscape that contrasts with the euro zone, where most economies are either teetering on the brink of or in recession.
The euro was up 0.5 percent at $1.3261, and the US Dollar Index was down 0.5 percent at 79.736.
The relationship between risk appetite and the dollar has become more complicated, according to Chris Fernandes, vice president and senior foreign exchange adviser for the capital markets division at Bank of the West inSan Ramon,California.
"Whereas in the past the dollar would tend to fall as risk appetite was rising, the dollar is now benefiting from pro-risk developments, as US economic data has generally bested expectations recently," he said.
Brent oil was up $1.74 at $124.88 a barrel, underpinned by worries that military conflict withIranwill hit supplies and create an oil price spike.
USlight sweet crude oil rose $1.63 to $106.98 a barrel. The Reuters/Jefferies CRB Index of leading commodity prices was up 0.8 percent at 314.78.
Comments
Comments are closed for this article.