Economy

World stocks rise on tame inflation outlook, dollar eases

World stocks rise on tame inflation outlook, dollar eases

The Bloomberg Dollar Spot Index advanced 0.3 percent, the first gain in a week.

The dollar index, a gauge of the currency's strength against six major counterparts, stood little changed at 96.505. European stocks trimmed an advance on the news, but remained higher while the pound fell as the Brexit saga rumbled on. Immediate resistance can be seen at 1.3373 (38.2% retracement level), an upside break can trigger rise towards 1.3472 (23.6% retracement level).On the downside, immediate support is seen at 1.3294 (50% retracement level), a break below could take the pair towards 1.3214 (61.8% retracement level).

US producer prices barely edged higher in February, in the smallest annual increase since June 2017, the latest sign of benign inflation that supports the Federal Reserve's patient approach to future interest rate hikes.

Other U.S. data showed import prices in February rose by the most in nine months.

GRAPHIC-World FX rates in 2019: http://tmsnrt.rs/2egbfVh (Recasts; updates prices) By Kate Duguid NEW YORK, March 13 (Reuters) - The British pound jumped in late Wednesday trade, hitting session highs after British lawmakers rejected leaving the European Union without a deal in any scenario.

The euro declined 0.2 percent to $1.1306, the first retreat in a week. "But the dollar has been weakened by declining US yields and any reprieve for the currency is likely to be limited".

USA stock market added to previous session gains on Tuesday led by the health care and utilities shares. The stock closed up 0.5 percent.

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A day earlier, the British currency soared almost 2 percent and reached nine-month highs after lawmakers voted against a potentially disorderly "no-deal" departure from the EU.

The ongoing Brexit drama, a cut to the UK's growth forecast and a warning from America's top trade negotiator that tariffs may not be rolled back are adding to an uncertain picture for global growth. The U.S. dollar was softer on Wednesday after new inflation data bolstered the likelihood U.S. interest rates will not be raised any time soon.

While sterling has recently rallied as investors latched on to the hope of a Brexit deadline extension, that euphoria may be short-lived, said Marcus Wong, strategist at CIMB Bank Bhd.

The MSCI Asia Pacific Index fell 0.3 percent.

Benchmark 10-year U.S. Treasury notes fell 2/32 in price to push yields up to 2.6141 percent.

The yield on 10-year Treasuries gained one basis point to 2.63 percent.Germany's 10-year yield gained one basis point to 0.07 percent, the highest in more than a week.Britain's 10-year yield advanced three basis points to 1.227 percent, the highest in more than a week.The spread of Italy's 10-year bonds over Germany's decreased three basis points to 2.4582 percentage points.

United States crude rose $1.39 to settle at $58.26 per barrel and Brent settled up 88 cents at $67.55. US crude oil futures settled at $58.26 a barrel, rising $1.39 cents, or 2.44 percent.