Global stocks rally as European shares scale new highs, dollar slips

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NEW YORK, May 10 ― World stocks rallied yesterday, led by surging European shares and a larger-than-expected rise in US weekly jobless claims that buoyed interest rate cut...

NEW YORK, May 10 ― World stocks rallied yesterday, led by surging European shares and a larger-than-expected rise in US weekly jobless claims that buoyed interest rate cut hopes, while the dollar eased as the market awaits key inflation data next week.

“It's a relatively quiet week, but initial jobless claims came in weaker. We're still clearly in that 'bad news is good news' macro regime,” said Matt Miskin, co-chief investment strategist at John Hancock Investment Management in Boston. MSCI's gauge of stocks across the globe closed up 0.38 per cent. The Dow Jones Industrial Average advanced 0.85 per cent for its seventh straight day of gains. The S&P 500 gained 0.51 per cent and the Nasdaq Composite 0.27 per cent.

The dollar index, a measure of the US currency against a basket of six others, including the yen and the euro, fell 0.28 per cent to 105.22. The euro rose 0.34 per cent to US$1.0781 and the yen fell 0.09 per cent to 155.420 per dollar.Benchmark Treasury yields retreated on relief that all US$125 billion in new note and bond supply this week was absorbed smoothly.

 

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