Global Markets: Stocks rise on tame inflation outlook, dollar eases


US stocks advanced broadly, with Boeing gaining for the first time since Sunday's crash of a 737 MAX 8 jet in Ethiopia, while European shares rose on expectations British lawmakers will vote to reject a disorderly no-deal exit for Britain from the European Union. The significance of such a passage is that if it were to pass, the British Parliament would then vote the next day (Thursday) on whether to instruct the Government to request a postponement of the Brexit departure date beyond 29 March 2019 from the European Union.

The euro was steady at US$1.1331 after advancing 0.3 per cent overnight.

British lawmakers are now widely expected to vote today to delay Britain's departure from the European Union, currently scheduled for March 29.

The global stock market rally that began in early January continued for another day yesterday and continued this morning in Europe, although indices here momentarily gave up their gains while United States index futures turned flat.

Oil prices rose more than 1 percent, supported by an unexpected drop in US crude inventory along with a forecast of slower-than-expected supply from the world's top crude producer.

US crude stocks fell last week as refineries hiked output, the US Energy Information Administration said.

USD/JPY: The U.S. dollar dipped against the yen on Wednesday, as tepid U.S. economic data reinforced views the Federal Reserve would be patient on monetary policy. Tepid inflation and disappointing producer price data this week support the Fed's stance of keeping interest rates on hold, denting the dollar. The stock closed up 0.5 percent.

The dollar index hovered near a seven-day trough hit after the inflation data against a basket of major currencies Against the Japanese yen, the greenback gained slightly to 111.44.

Wednesday's vote boosted investor optimism in European equities too, with the pan-European STOXX 600 index climbing 0.6 percent while London's FTSE 100 added 0.1 percent as sterling extended gains.

More news: Spotify reports Apple to European Union commission over rules which 'disadvantage' app developers
More news: NASA's new moon rocket won't be ready for 2020 launch
More news: Google Is Probably Making a Video Game Console

The Dow Jones Industrial Average was lower after Boeing's two-day rout topped 11%, when Europe's aviation authority banned the troubled aircraft.

U.S. Treasury yields rose after falling the previous session as risk appetite improved and equity markets steadied.

The yield on 10-year Treasuries climbed one basis point to 2.61 percent.

US 30-year bond yields were up at 3.011 percent from 2.99 percent on Tuesday.But yields on both 10-year notes and 30-year bonds have fallen in six of the last eight sessions.

Gold climbed 0.7 percent to $1,311.06 an ounce, the highest in nearly two weeks.

Oil futures rallied about 2 percent on Wednesday as USA crude inventories unexpectedly fell and an official forecast of crude oil supply growth from the world's top producer was revised lower.

U.S. crude rose $1.39 to settle at $58.26 per barrel and Brent settled up 88 cents at $67.55.

Brent crude futures settled at $67.55 a barrel, up 88 cents, or 1.32 percent.