U.S. stocks stage late rebound, dollar slips

Wed Jun 1, 2016 5:45pm EDT
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By Richard Leong

NEW YORK (Reuters) - U.S. stock prices rose slightly on Wednesday helped by a late recovery in oil prices and an encouraging economic report from the Federal Reserve, but equity prices in other major world markets fell on worrisome Chinese and European factory data.

The U.S. dollar slipped on fresh doubts about a Federal Reserve interest rate rise in June and Japan's postponement of a sales tax increase which helped to boost the yen.

Oil prices ended lower but recovered from the day's worst levels after OPEC sources said the group will likely consider a production curb at its meeting on Thursday in Vienna. [O/R]

U.S. Treasury bond prices ended lower on the late bounce in stock and commodity prices.

Global manufacturing activity remained stuck in a rut last month with factory output from Asia, Europe and the Americas barely improving as producers struggled to bring in new orders, surveys released on Wednesday showed.

Speculation in recent weeks that the U.S. Federal Reserve will raise interest rates in the next few months and worries that a possible British exit from the European Union have undermined business confidence.

"The world economy will meander along at its slowest pace since the financial crisis for a second year in a row in 2016 as it is ensnared in a "low-growth trap", the OECD said on Wednesday, urging governments to boost spending.


Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 25, 2016.  REUTERS/Brendan McDermid