NEW YORK: The euro and U.S. dollar rallied on Friday, Sept 10 after strong import data from China raised optimism about global growth, while stocks edged higher, buoyed by the economic outlook and rising oil prices.
The dollar rose nearly 1.2 percent on the day and the euro gained against the Swiss franc as the safe-haven currency came under selling pressure due to the rise in risk appetite.
Chinese imports jumped in August, a sign of potential stronger domestic demand in an economy that is a major driver of global growth.
Imports rose 35.2 percent in from a year earlier, easily beating July's 22.7 percent rise and market forecasts of a 26.1 percent gain, General Administration of Customs data showed.
Risk aversion also eased on news that Dubai World had reached a deal to restructure its liabilities, helping ease renewed fears about Dubai's debt woes..
Gold dropped 1 percent as the dollar moved back into positive territory and global stocks reversed early losses to trade slightly higher as U.S. stocks rose after the open, the sixth day of gains in the last seven sessions.
"There has been strong risk assumption on the China data overnight," said John Doyle, senior currency strategist at Tempus Consulting in Washington.
MSCI's all-country world equity index rose 0.1 percent, aided by higher U.S. stocks.
But European shares retreated from four-month highs as bank shares slipped ahead of the Basel Committee meeting and on a report that Deutsche Bank plans to raise up to 9 billion euros ($11.4 billion) in a stock offering.
Shortly after 11 a.m. EDT, the Dow Jones industrial average gained 40.79 points, or 0.39 percent, to 10,456.03. The Standard Poor's 500 Index rose 5.59 points, or 0.51 percent, to 1,109.77. The Nasdaq Composite Index gained 7.26 points, or 0.32 percent, to 2,243.46.
Worries in August that the U.S. economy was poised to slip back into recession have waned as economic data, while still sluggish, has beat consensus forecasts since September began.
"After spending the better part of the summer pricing in fears of a double-dip recession, the market is going to start pricing the fact that (it) most likely doesn't come about," said Art Hogan, chief market analyst at Jefferies Co in Boston.
U.S. crude oil rose 2 percent to more than $75 a barrel due to the shutdown of a major pipeline, but a leading forecaster said demand would remain tepid.
The International Energy Agency said global oil demand growth was expected to increase a little this year but slip in 2011 and that fuel consumption could be much weaker if the world economy slows.
U.S. light sweet crude oil rose $1.48 to $75.73 a barrel. Brent crude gained 30 cents to $77.77.
A leak forced Enbridge to shut down the biggest pipeline supplying Canadian oil to refineries in the U.S. Midwest and to a key storage hub in Oklahoma.
U.S. Treasury prices fell as investors reduced their holdings of safe-haven government bonds after a record supply of higher-yielding corporate bonds this week.
The benchmark 10-year U.S. Treasury note was down 11/32 in price to yield 2.80 percent.
December Bund futures slipped to a session low, tracking U.S. Treasuries lower.
Copper eased as the market fretted about tighter policy in top consumer China, but strong metals import data from the country helped support prices.
Spot gold prices rose $3.25 to $1,246.80 an ounce. - Reuters
The dollar rose nearly 1.2 percent on the day and the euro gained against the Swiss franc as the safe-haven currency came under selling pressure due to the rise in risk appetite.
Chinese imports jumped in August, a sign of potential stronger domestic demand in an economy that is a major driver of global growth.
Imports rose 35.2 percent in from a year earlier, easily beating July's 22.7 percent rise and market forecasts of a 26.1 percent gain, General Administration of Customs data showed.
Risk aversion also eased on news that Dubai World had reached a deal to restructure its liabilities, helping ease renewed fears about Dubai's debt woes..
Gold dropped 1 percent as the dollar moved back into positive territory and global stocks reversed early losses to trade slightly higher as U.S. stocks rose after the open, the sixth day of gains in the last seven sessions.
"There has been strong risk assumption on the China data overnight," said John Doyle, senior currency strategist at Tempus Consulting in Washington.
MSCI's all-country world equity index rose 0.1 percent, aided by higher U.S. stocks.
But European shares retreated from four-month highs as bank shares slipped ahead of the Basel Committee meeting and on a report that Deutsche Bank plans to raise up to 9 billion euros ($11.4 billion) in a stock offering.
Shortly after 11 a.m. EDT, the Dow Jones industrial average gained 40.79 points, or 0.39 percent, to 10,456.03. The Standard Poor's 500 Index rose 5.59 points, or 0.51 percent, to 1,109.77. The Nasdaq Composite Index gained 7.26 points, or 0.32 percent, to 2,243.46.
Worries in August that the U.S. economy was poised to slip back into recession have waned as economic data, while still sluggish, has beat consensus forecasts since September began.
"After spending the better part of the summer pricing in fears of a double-dip recession, the market is going to start pricing the fact that (it) most likely doesn't come about," said Art Hogan, chief market analyst at Jefferies Co in Boston.
U.S. crude oil rose 2 percent to more than $75 a barrel due to the shutdown of a major pipeline, but a leading forecaster said demand would remain tepid.
The International Energy Agency said global oil demand growth was expected to increase a little this year but slip in 2011 and that fuel consumption could be much weaker if the world economy slows.
U.S. light sweet crude oil rose $1.48 to $75.73 a barrel. Brent crude gained 30 cents to $77.77.
A leak forced Enbridge to shut down the biggest pipeline supplying Canadian oil to refineries in the U.S. Midwest and to a key storage hub in Oklahoma.
U.S. Treasury prices fell as investors reduced their holdings of safe-haven government bonds after a record supply of higher-yielding corporate bonds this week.
The benchmark 10-year U.S. Treasury note was down 11/32 in price to yield 2.80 percent.
December Bund futures slipped to a session low, tracking U.S. Treasuries lower.
Copper eased as the market fretted about tighter policy in top consumer China, but strong metals import data from the country helped support prices.
Spot gold prices rose $3.25 to $1,246.80 an ounce. - Reuters
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