Equities, rising dollar; European leaders call for new sanctions from Moscow

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A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., April 4, 2022. REUTERS/Brendan McDermid

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  • US stocks are typically higher early in trade
  • Oil prices gain
  • The US dollar strengthens

NEW YORK, April 4 (Reuters) – Shares on global indices rose on Monday, with the Nasdaq leading gains on Wall Street, while the U.S. dollar strengthened as European leaders called for new sanctions against Moscow following allegations of war crimes in Ukraine.

Investors were watching the yield curve between two-year and 10-year U.S. bonds closely, which inverted last week, signaling to some market watchers that a recession could follow in one to two years.

More sanctions against Russia would increase the already enormous economic pressure on Russia following its invasion of Ukraine.

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Russia has maintained gas flows through major pipeline routes to Europe, despite uncertainty over payment terms. Read more

The dollar gained, rising for three straight sessions, as the prospect of increased sanctions caused investors to seek safety in the greenback. Read more

“The dollar is bouncing higher as geopolitical developments have clouded the clouds over the global economy,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington. The Kremlin has denied charges related to the killing of civilians in Ukraine.

The U.S. currency also continued to benefit from a strong nonfarm payrolls report for March that supported expectations of a half-percentage-point rate hike by the Federal Reserve at the month’s meeting. next.

The dollar index rose 0.245%.

The euro, which has been under pressure due to concerns over economic damage from the war in Ukraine, fell 0.6% against the dollar to $1.0988. Against the pound, the euro fell to a six-day low and it was last down 0.6% at 83.73 pence.

On Wall Street, news that Tesla Inc (TSLA.O) CEO Elon Musk has acquired a 9.2% stake in Twitter Inc (TWTR.N) captured attention and sent Tesla shares soaring. Twitter. Read more

The Dow Jones Industrial Average (.DJI) fell 3.76 points, or 0.01%, to 34,814.51, the S&P 500 (.SPX) gained 21.62 points, or 0.48%, to 4,567.48 and the Nasdaq Composite (.IXIC) added 213.94 points, or 1.5%, to 14,475.44.

The pan-European STOXX 600 index (.STOXX) rose 0.93% and the MSCI gauge of stocks across the world (.MIWD00000PUS) gained 0.65%.

In the US Treasury market, two-year yields were at 2.44%, while benchmark 10-year yields were at 2.41%.

The recent rise in US bond yields has supported the US dollar, particularly against the yen, as the Bank of Japan acted repeatedly over the past week to keep bond yields close to zero.

On the US economic front, the Commerce Department said factory orders fell 0.5% in February. January’s data was revised slightly higher to show orders rose 1.5% instead of 1.4% as previously reported. Economists polled by Reuters had forecast factory orders would fall 0.5%. Read more

Oil jumped more than 3% as the release of strategic reserves by consuming countries failed to eliminate supply fears stemming from Russia’s invasion of Ukraine and the lack of an Iranian nuclear deal. Read more

U.S. crude recently rose 3.52% to $102.76 a barrel and Brent to $107.58, up 3.06% on the day.

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Additional reporting by Gertrude Chavez-Dreyfuss in New York, Julien Ponthus in London; Editing by Richard Chang and Andrea Ricci

Our standards: The Thomson Reuters Trust Principles.

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