Stocks rise, dollar pulls back from 3-year high

Mon Jul 8, 2013 12:36pm EDT
 
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By Caroline Valetkevitch

NEW YORK (Reuters) - Global stock indexes rose on Monday as strong U.S. jobs data reassured investors the U.S. economy was still strengthening while the dollar pulled back after hitting a three-year high against a basket of currencies.

Brent crude oil eased after rising sharply on unrest in Egypt, which stoked concerns about global oil supplies.

The upbeat U.S. jobs data from Friday also fueled some concern the Federal Reserve could soon start reducing its $85 billion a month stimulus, but stock investors seemed to focus more on what it said about the economy.

"We've turned the corner," said Randy Frederick, managing director of active trading and derivatives for Charles Schwab in Austin, Texas. "Friday was a pivotal point for the market changing its focus from, 'What is the Fed going to do to support the market?' to 'What's going on in the economy?'"

MSCI's global share index .MIWD00000PUS was up 0.3 percent. Europe's broad FTSEurofirst 300 stock index was up 1.4 percent.

The Dow Jones industrial average .DJI rose 69.26 points, or 0.46 percent, at 15,205.10. The Standard & Poor's 500 Index .SPX was up 6.77 points, or 0.41 percent, at 1,638.66. The Nasdaq Composite Index .IXIC was down 0.72 points, or 0.02 percent, at 3,478.66.

The dollar index .DXY was down 0.26 percent at 84.217, having hit 84.588 earlier, its strongest since July 2010.

Analysts said the greenback should resume its uptrend as the Fed looks poised to power down its massive stimulus program.   Continued...

 
Electronic information boards display market information at the London Stock Exchange in the City of London January 2, 2013. REUTERS/Paul Hackett