Global stocks, dollar edge higher but safe havens get bid after Turkey, Germany attacks

Mon Dec 19, 2016 5:08pm EST
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By Dion Rabouin

NEW YORK (Reuters) - Stocks edged higher worldwide on Monday as Wall Street extended a rally that has pushed U.S. stocks near all-time highs, while the dollar got a boost from Federal Reserve Chair Janet Yellen who sounded optimistic about the U.S. labor market.

Deadly attacks late in the trading day in Turkey and Germany made stocks pare their gains, while Treasuries prices rose and the safe-haven yen firmed.

U.S. stock indexes hit record highs last week as investors piled on bets that the anticipated fiscal boost from the incoming administration of U.S. President-elect Donald Trump would support riskier assets.

That trend continued Monday with MSCI's gauge of global equities finishing the session modestly higher, buoyed by gains in U.S. stocks, which were led by telecom and tech shares in a low-volume session.

"The Trump rally is still with us," said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma. "Every time something's down for two days, people jump on it. People are looking for buying opportunities."

Stocks pared their gains after news that a truck had plowed into a crowd in Berlin, killing nine people and injuring at least 50 others.

The Dow Jones industrial average rose 39.65 points, or 0.2 percent, to 19,883.06, the S&P 500 gained 4.46 points, or just under 0.2 percent, to 2,262.53 and the Nasdaq Composite added 20.28 points, or 0.37 percent, to 5,457.44.

The Turkish lira and Russian rouble fell to session lows against the greenback on news the Russian ambassador to Turkey was killed in a gun attack at an art gallery in the Turkish capital of Ankara.   Continued...

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., December 16, 2016.  REUTERS/Brendan McDermid - RTX2VD7J