Stocks upbeat, dollar rises at euro's expense
SPY•SPY•SPY•SPY•Stocks rose as investors cut the chance of a Federal Reserve rate hike this month to less than 20%, from 64% a week earlier. The euro fell to a 17-month low, while the dollar gained and oil prices edged lower.
Asian stocks advanced, with Japan's Nikkei up 2.5% and MSCI's broadest index of Asia-Pacific shares outside Japan up 0.9%. Investors priced in less than a 20% chance of a Fed rate hike this month, down from 64% a week earlier, but still expected a hike in December.
The dollar rose, supported by elevated US Treasury yields and weakness in the euro. The euro fell 0.6% to $1.1185, its lowest level in 17 months, amid fiscal worries in France. The dollar gained 0.12% against the yen to 158.01, while sterling fell 0.25% to $1.3205.
The 10-year US Treasury yield edged down to 5.2579%, while the two-year yield stood at 4.8059%. Brent crude fell 0.7% to $101.52 a barrel and US crude dropped more than 1% to $90.11, as rising Middle East exports and a G7 oil-stock release added supply.
