GLOBAL MARKETS-US dollar, Treasury yields slip on U.S. inflation data, stocks up

From Reuters - October 13, 2017

NEW YORK (Reuters) - The U.S. dollar fell and was on course for its worst week in more than a month, while Treasury yields fell after underlying U.S. inflation data offset higher gasoline prices and strong retail sales in the wake of disruptions caused by hurricanes.

Stocks on major world stocks however hit their fourth record in a row, with Wall Street moving higher as some investors bet that the inflation data could curb future Federal Reserves rate rises.

European shares also rose to their highest level in nearly four months, helped by some well-received corporate earnings updates.

U.S. consumer prices recorded their biggest increase in eight months in September as gasoline prices soared in the wake of hurricane-related production disruptions at oil refineries in the Gulf Coast area, but underlying inflation remained muted.

U.S. retail sales recorded their biggest increase in 2-1/2 years in September likely as reconstruction and clean-up efforts in areas devastated by Hurricanes Harvey and Irma boosted demand for building materials and motor vehicles.

Its a favorable environment for risk taking. Economic and earnings growth with slow inflation means rates stay low and the dollar trends lower and risk taking is rewarded, said Jack Ablin, chief investment officer at BMO Private Bank in Chicago.

The Dow Jones Industrial Average rose 54.25 points, or 0.24 percent, to 22,895.26, the S&P 500 gained 6.23 points, or 0.24 percent, to 2,557.16 and the Nasdaq Composite added 23.17 points, or 0.35 percent, to 6,614.68.

The pan-European FTSEurofirst 300 index rose 0.29 percent and MSCIs gauge of stocks across the globe gained 0.37 percent.

Earlier in Asia, MSCIs broadest index of Asia-Pacific shares outside Japan hit a roughly 10-year high.


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