AIRLINK 189.36 Increased By ▲ 1.33 (0.71%)
BOP 11.10 Decreased By ▼ -0.76 (-6.41%)
CNERGY 7.28 Decreased By ▼ -0.26 (-3.45%)
FCCL 36.65 Decreased By ▼ -1.14 (-3.02%)
FFL 14.95 Decreased By ▼ -0.29 (-1.9%)
FLYNG 26.19 Increased By ▲ 0.66 (2.59%)
HUBC 130.89 Increased By ▲ 0.74 (0.57%)
HUMNL 13.47 Decreased By ▼ -0.14 (-1.03%)
KEL 4.28 Decreased By ▼ -0.07 (-1.61%)
KOSM 6.08 Decreased By ▼ -0.09 (-1.46%)
MLCF 45.94 Increased By ▲ 0.26 (0.57%)
OGDC 201.86 Decreased By ▼ -4.57 (-2.21%)
PACE 6.12 Decreased By ▼ -0.26 (-4.08%)
PAEL 38.36 Decreased By ▼ -1.95 (-4.84%)
PIAHCLA 16.73 Decreased By ▼ -0.22 (-1.3%)
PIBTL 7.94 Decreased By ▼ -0.09 (-1.12%)
POWER 9.86 Decreased By ▼ -0.17 (-1.69%)
PPL 173.46 Decreased By ▼ -5.38 (-3.01%)
PRL 34.73 Decreased By ▼ -1.63 (-4.48%)
PTC 23.95 Decreased By ▼ -0.44 (-1.8%)
SEARL 101.74 Decreased By ▼ -1.42 (-1.38%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 32.70 Decreased By ▼ -3.54 (-9.77%)
SYM 17.93 Decreased By ▼ -0.30 (-1.65%)
TELE 8.14 Decreased By ▼ -0.24 (-2.86%)
TPLP 12.02 Decreased By ▼ -0.14 (-1.15%)
TRG 67.40 Increased By ▲ 0.07 (0.1%)
WAVESAPP 11.80 Decreased By ▼ -0.21 (-1.75%)
WTL 1.52 Decreased By ▼ -0.05 (-3.18%)
YOUW 3.90 Increased By ▲ 0.01 (0.26%)
BR100 11,819 Decreased By -87.9 (-0.74%)
BR30 35,000 Decreased By -554.1 (-1.56%)
KSE100 112,085 Decreased By -478.8 (-0.43%)
KSE30 34,946 Decreased By -148 (-0.42%)

imageNEW YORK: The dollar sank to a five-week low on Thursday while US bond yields rose as investors digested the recent US interest rate increase and indications there would be no pick-up in the pace of monetary tightening.

European stock markets gained following the election victory by Dutch Prime Minister Mark Rutte, who fought off a challenge by anti-immigration, anti-European Union rival Geert Wilders.

MSCI's all-country world stock index gained 0.7 percent, and hit an all-time high.

On Wall Street, the benchmark S&P 500 index slipped after gaining sharply on Wednesday in the wake of the US Federal Reserve's rate decision.

Fed Chair Janet Yellen pointed to growing faith in the economy's trajectory as the US central bank raised rates for the second time in three months.

"Certainly, the Fed was dovish in their approach," said Bruce Bittles, chief investment strategist at Robert W. Baird in Sarasota, Florida. "The fact that the Fed raised rates, but not aggressively, but yet indicated that she had confidence in the economy certainly was a big help."

The Dow Jones Industrial Average fell 15.55 points, or 0.07 percent, to 20,934.55, the S&P 500 lost 3.88 points, or 0.16 percent, to 2,381.38 and the Nasdaq Composite added 0.71 points, or 0.01 percent, to 5,900.76.

Traders reversed initial reaction to the Fed decision, as financials, which sold off on Wednesday, led gains, while utilities - often used as a proxy for bonds - slumped as benchmark 10-year Treasury note yields rose.

"You see that throughout the whole marketplace, reactions to higher yields today," said Jim Paulsen, chief investment strategist at Wells Capital Management in Minneapolis.

The pan-European STOXX 600 index rose 0.7 percent and touched its highest level since December 2015, helped by the Fed's dovish tone and the Dutch election results.

Amsterdam's AEX index rose 0.6 percent and hit its highest in more than nine years.

"Some of that fear around Brexit, Trump, and then Wilders and (France's) Le Pen, may now be seeping out of the markets - you see some of that fear dissipating," said Arne Petimezas, analyst at AFS Group in Amsterdam, referring to far-right French presidential Marine Le Pen.

The dollar fell 0.5 percent against a basket of key currencies, adding to Wednesday's steep slide after the Fed's decision. It touched a five-week low.

Sterling jumped after the Bank of England kept interest rates on hold but gave a handful of hints in voting results and its minutes that it might raise them soon.

US Treasury yields rose from more than one-week lows on the view that they had fallen too sharply in the prior session after the Fed maintained its outlook for only a gradual pace of interest rate increases this year.

Prices on benchmark 10-year Treasuries <US10YT-RR> fell 8/32 to yield 2.531 percent, up from 2.504 percent late on Wednesday.

Oil prices slipped as support from a weaker dollar was offset by US crude inventories near record high levels.

Brent crude ended the session 7 cents lower at $51.74 a barrel. US light crude settled 11 cents lower at $48.75 a barrel.

Comments

Comments are closed.