Dollar rises to third weekly gain; stocks jump
By Herbert Lash
NEW YORK (Reuters) - Global equity markets rose on Friday as investors took in stride the possibility the Federal Reserve may hike interest rates in June, a view that helped U.S. bond yields to rise and lifted the dollar to a third straight week of gains.
U.S. home resales rose more than expected in April, suggesting the American economy has continued to gather pace during the second quarter. The data added to a growing perception that a rate hike next month or in July would not derail U.S. growth.
Wall Street rose, following gains in Europe, with the S&P financial sector index .SPSY rising 0.61 percent as recent comments from Fed officials suggested the possibility of a rate increase as early as June.
Information technology .SPLRCT was the biggest gainer among the S&P sectors, rising 1.18 percent, on a higher-than-expected profit forecast from chip company Applied Materials (AMAT.O: Quote), whose shares closed up 13.8 percent.
New York Fed President William Dudley said on Thursday the U.S. economy was strong enough to warrant a rate hike.
MSCI's all-country world stock index .MIWD00000PUS rose 0.77 percent, and the pan-European FTSEurofirst 300 index .FTEU3 of leading regional stocks closed up 1.26 percent to 1,326.45 points.
On Wall Street, the Dow Jones industrial average .DJI closed up 65.54 points, or 0.38 percent, to 17,500.94. The S&P 500 .SPX gained 12.28 points, or 0.6 percent, to 2,052.32 and the Nasdaq Composite .IXIC added 57.03 points, or 1.21 percent, to 4,769.56.
For the week, the Dow fell 0.2 percent, the S&P 500 gained 0.3 percent and Nasdaq climbed 1.1 percent. Continued...