Asia stocks to rise as U.S. gains

Lloyd Doyle
March 14, 2019

Other data showed new orders for USA -made capital goods increased by the most in six months in January and shipments also rose, but business spending on equipment remained soft, leaving forecasts for weak first-quarter economic growth intact.

The Bloomberg Dollar Spot Index dipped 0.3 percent. Immediate resistance can be seen at 1.1314 (21 DMA), an upside break can trigger rise towards 1.1366 (50 DMA).On the downside, immediate support is seen at 1.1254 (5 DMA), a break below could take the pair towards 1.1175 (March 7th low). Boeing and Brexit otherwise dominated headlines, as the planemaker's woes deepened and the pound fell before a key vote.

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.

The pound whipsawed amid the Brexit drama, rising overnight after Theresa May won a new deal to leave the EU.

USA dollar fell in late trading on Wednesday, amid big gains in the British pound.

British lawmakers are widely expected to vote on Thursday to delay Britain's departure from the European Union, now scheduled for March 29.

US producer prices barely edged higher in February to mark the smallest annual increase since June 2017, in the latest sign of benign inflation that supports the Federal Reserve's wait-and-see approach to future interest rate hikes. Domestic producer prices in the United States rose 1.9 percent on a year-over-year basis in February, the smallest annual increase since June 2017. The U.S. central bank's rate-setting committee will issue its next policy statement following its March 19-20 meeting.

The dollar was 0.35 percent higher at 111.53 yen after losing 0.2 percent the previous day. Its shares retreated for part of the session after first Canada and then the United States said they were grounding 737 MAX jets, following steps already taken by Europe and other nations.

British lawmakers voted by a margin of 43 to confirm their decision to reject any no deal Brexit on Wednesday.


The UK's benchmark FTSE 100 closed flat, FTSEurofirst 300 ended the day up by 0.63 percent, Germany's Dax ended up by 0.5 percent, and France's CAC finished the up by 0.7 percent.

On Wall Street, the Dow Jones Industrial Average rose 148.23 points, or 0.58 percent, to 25,702.89.

In late NY trading, the euro was up to 1.1329 US dollars from 1.1296 dollars in the previous session, and the British pound rose to 1.3217 dollars from 1.3084 dollars in the previous session. An unexpectedly weak USA inflation reading bolstered most shares on speculation the Fed can hold as the economy finds its footing.

The U.S. currency was lifted as long-term U.S. Treasury yields bounced back from two-month lows plumbed at the start of the week.

Oil prices rose more than 1 percent, supported by an unexpected drop in USA crude inventory along with a forecast of slower-than-expected supply from the world's top crude producer.

Gold hit almost a two-week high on Wednesday as lackluster USA data reinforced views the Federal Reserve would be patient on monetary policy, with bullion's appeal also bolstered by uncertainty over a Brexit deal ahead of a key vote.

US crude rose $1.39 to settle at $58.26 per barrel and Brent settled up 88 cents at $67.55.

Gold climbed 0.7 percent to $1,311.06 an ounce, the highest in nearly two weeks.

Other reports by Iphone Fresh

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