Dol­lar steady, yields, stocks rise be­fore Yellen speech


NEW YORK (Reuters) – World stocks and US Trea­sury yields rose on Mon­day ahead of an im­pend­ing speech by Fed­eral Re­serve Chair Janet Yellen on mon­e­tary pol­icy, while the US dol­lar stead­ied against a bas­ket of key cur­ren­cies, sta­bi­liz­ing above its low­est in more than three weeks.

A gauge of global eq­uity mar­kets ticked higher, lifted by en­ergy stocks, as Brent crude-oil prices jumped to a fresh seven-month high fol­low­ing Friday’s sharp slide in the dol­lar.

The green­back, which suf­fered its big­gest one-day drop against a bas­ket of ma­jor cur­ren­cies in four months on Friday af­ter a poor pay­rolls re­port, was last down 0.02 per­cent, at 94.007.

Traders awaited clues on the tim­ing of a Fed in­ter­est-rate hike from Yellen.

World eq­uity mar­kets were higher, and the MSCI’s all-coun­try world eq­uity in­dex was up 0.57%, on pace for its third ses­sion of gains.

On Wall Street, the Dow Jones In­dus­trial Av­er­age was up 99.44 points, or 0.56%, at 17,906.5 in early af­ter­noon trad­ing, the S&P 500 was up 9.5 points, or 0.45%, at 2,108.63, and the Nas­daq Com­pos­ite added 19.03 points, or 0.39%, at 4,961.55.

Europe’s broad FTSEurofirst 300 in­dex was up 0.51%, at 1,346.36, bol­stered by gains in ma­jor min­ing and oil com­pany shares, in­clud­ing An­glo Amer­i­can, Rio Tinto and BHP Bil­li­ton.

In the US Trea­sury mar­ket, yields rose as in­vestors eval­u­ated whether the weak jobs re­port for May would make it less likely for the Fed to raise rates in the com­ing months. Higher rates could curb spend­ing and in­vest­ment by in­di­vid­u­als and com­pa­nies, pos­si­bly hurt­ing eco­nomic growth.

Ris­ing yields on Mon­day likely re­flected stronger risk sen­ti­ment as stocks gained, rather than ex­pec­ta­tions that Yellen would strike a more hawk­ish tone, said Thomas Si­mons, a money-mar­ket econ­o­mist at Jef­feries in New York.

Bench­mark 10-year notes fell 6/32 in price to yield 1.725%, up from a two-month low of 1.697% on Friday.

Brent crude-oil prices rose above $50 a bar­rel to their high­est since early Novem­ber, lifted by Friday’s dol­lar weak­ness that could spur de­mand just as at­tacks on Nige­rian oil in­fra­struc­ture tight­ened sup­plies.

A weaker dol­lar sup­ports fuel de­mand in the rest of the world as it makes dol­lar-traded oil im­ports cheaper.

Brent crude was last up 2.2%, at $50.75 a bar­rel. US crude was last up 2.5%, at $49.83 per bar­rel.

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