The Dow Jones Industrial Average closed at an all-time high for the 10th consecutive day Thursday, as the dollar slid for a second straight session after minutes from the Federal Reserve’s last meeting showed officials were confident they could raise interest rates gradually without triggering inflation. U.S. stocks pared losses. The S&P 500 Index was up slightly, rebounding from a loss of as much as 0.3 percent earlier in the day, while the Dow added 0.16 percent. U.S. bonds moved higher with European debt. French bonds advanced after a pact between independent presidential candidate Emmanuel Macron and centrist Francois Bayrou helped ease fears the country could elect a leader who favours leaving the European Union.
Crude climbed back above $54 after an industry report showed U.S. stockpiles fell. The rally that brought the value of global equities to more than $70 trillion and the MSCI All-Country World Index to a record appears to have lost momentum as money managers grapple with political uncertainty and the Fed’s schedule for lifting borrowing costs. In an interview with Bloomberg, Treasury Secretary Steven Mnuchin signaled no urgency to designate China a currency manipulator, contradicting an October pledge by then-candidate Donald Trump to direct his Treasury secretary to name China a manipulator on the first day of his administration.
The dollar drifted since Tuesday 21st Feb, with its earlier advance halted by investors taking a wait-and-see approach ahead of US President Donald Trump’s closely-watched Congressional address later in the day. The dollar index was little changed at 101.15 against a basket of key currencies, after posting a modest gain the previous day, when it initially went as low as 100.69. The currency market could also face turbulence if Trump raises sensitive issues involving US trade partners.
A slight ebb in concerns towards the French presidential election has helped the common currency, which had sunk to a 1.1/2-month low of $1.0494 last week.
