US stocks, dollar rebound

US stocks rebounded from the worst selloff of the year and the dollar strengthened as data reinforced optimism in the economy even as political events continued to roil Washington. Brazilian assets plunged amid a government crisis.

According to Bloomberg News, the S&P 500 Index edged higher in trading 23 per cent higher than the 30-day average as buyers emerged the day after the Trump administration’s travails sparked concern his agenda is imperiled.

Measures of jobless claims and regional manufacturing beat forecasts, adding to signs economic growth is on firm footing.

The dollar benefited from weakness in emerging-market currencies as political turmoil engulfed Brazil.

The Ibovespa lost more than 8 percent. Financial markets stabilized as the Trump administration sought to move past the latest controversy to ensnarl its policy agenda. US stock volatility eased a day after spiking, while haven assets from gold to Treasuries held steady.

Brazil’s latest crisis rattled emerging market equities and Washington remained abuzz with fresh developments as the Justice Department Wednesday appointed a special counsel to probe Russia’s role in the 2016 election.

The S&P 500 rose 0.2 per cent to 2,360.54 in New York, after the benchmark gauge slumped 1.8 per cent on Wednesday, its worst day since September 9.

Related posts

Leave a Reply