Dol­lar re­treat gives oil and stocks a boost

Weekend Argus (Saturday Edition) - - FRONT PAGE -

NEW YORK: World stocks ad­vanced yes­ter­day and were poised for a mod­est gain to end the week as a drop in the dol­lar helped lift sagging oil prices.

The dol­lar fell against a bas­ket of ma­jor cur­ren­cies as pre­lim­i­nary data on US fac­tory and ser­vices ac­tiv­i­ties this month fell short of an­a­lyst fore­casts, stok­ing doubts over US eco­nomic growth for the rest of the year.

The drop in the green­back helped crude pull away from 10-month lows. On the week, both Brent and WTI crude lost nearly 4%. US crude rose 0.84% to $43.10 a bar­rel and Brent was at $45.64, up 0.93%.

The climb helped lift en­ergy stocks on Wall Street, with the group up 0.8% as the best per­form­ing of the ma­jor S&P sec­tors. The dol­lar briefly man­aged to re­coup some of its de­clines af­ter data showed new US sin­gle-fam­ily home sales rose in May and the me­dian sales price surged to a high. The PHLX hous­ing in­dex ad­vanced 0.7%.

The slide in en­ergy prices in re­cent weeks wors­ened the out­look for in­fla­tion, cre­at­ing a prob­lem for the world’s ma­jor central banks as they at­tempt to nor­malise interest rates af­ter years of ul­tra-loose pol­icy. – Reuters

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