Dollar rebounds after slide, oil retreats

Wed Feb 4, 2015 12:17pm EST
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By Ryan Vlastelica

NEW YORK (Reuters) - The U.S. dollar rebounded on Wednesday from its worst day in more than a year, while a retreat in oil prices pressured energy shares and put Wall Street stocks in negative territory.

Encouraging economic data out of the United States and Europe and optimism about Greece's debt negotiations spurred U.S. bond yields higher for a second session, continuing a market reversal from a stellar January.

U.S. crude futures CLc1, which rose almost 20 percent over the previous four session, were down 4.7 percent on Wednesday. Brent crude LCOc1 fell 3 percent to $56.16 per barrel. The S&P Energy index .SPNY fell 1 percent, by far the worst-performing group among S&P sectors.

"Oil has been the big driver. We have seen oil moving strongly since last Friday and certainly the energy sector was leading the market higher," said Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.

The Dow Jones industrial average .DJI rose 65.99 points, or 0.37 percent, to 17,732.39, the S&P 500 .SPX gained 0.68 points, or 0.03 percent, to 2,050.71 and the Nasdaq Composite .IXIC added 6.28 points, or 0.13 percent, to 4,734.02.

Shares in Europe .FTEU3 rose 0.5 percent, while the MSCI International ACWI Price Index .MIWD00000PUS rose 0.3 percent. In Japan, the Nikkei .N225 jumped 2 percent on strong results from Mitsubishi, the U.S. shares of which (MTU.N: Quote) rose 3.3 percent.

Shares in Shanghai .SSEC had closed 0.9 percent lower ahead of the announcement by China's central bank of a cut in the amount of cash that banks must hold as reserves. That was the first industry-wide cut in more than 2-1/2 years, as the central bank increased efforts to shore up flagging growth in the world's second-largest economy.

A business survey showed the euro zone private sector grew at its fastest pace in six months in January, while the Institute for Supply Management said its gauge on U.S. services sector unexpectedly ticked up.   Continued...

American dollar notes are displayed in this photo illustration in Johannesburg August 13, 2014. REUTERS/Siphiwe Sibeko