NEW YORK, July 8 ― US equities rose with Treasury yields yesterday as investors bet on economic light at the end of the Federal Reserve's rate hiking tunnel, while oil prices rose on supply concerns and sterling rallied as UK Prime Minister Boris Johnson resigned In foreign exchange markets, the euro edged closer to parity with the safe-haven dollar, which rose slightly against a basket of major currencies.
“What I'm seeing is optimism that perhaps the Fed rate hiking programme will not result in dire consequences for the economy. We've economically sensitive stocks leading the way higher today with higher oil prices and interest rates,” said Jack Ablin, chief investment officer at Cresset Capital in Chicago.
St. Louis Fed Bank President James Bullard said he sees a “good chance” of a soft landing for the economy.Minutes from the June meeting released on Wednesday showed that at the time policymakers discussed how a more restrictive stance might be needed if elevated inflation persisted.“The primary thing right now is the direction of Treasury yields. It's giving folks a reason to believe the Fed is close to its end point in raising interest rates.
During the session, the euro hit its lowest point against the greenback in two decades, edging closer to parity, a level it has not reached since December 2002.The Japanese yen weakened 0.04 per cent at 136.00 per dollar, while Sterling was last trading at US$1.2021, up 0.76 per cent on the day.