Reuters
Published Sep 09, 2010 05:21PM ET
* U.S. jobless claims, trade data lift stocks,
* Yen edges near 15-year high against dollar
* Safe-haven Treasuries fall after data (Updates with U.S. closing prices, Nikkei futures)
By Manuela Badawy
NEW YORK, Sept 9 (Reuters) - Stocks rose and bonds fell on Thursday after stronger-than-expected U.S. data on jobless benefits and trade, raising hopes the tepid economic recovery would accelerate.
However, indexes came off their highs as oil prices turned
negative and a report said Deutsche Bank
The yen edged near to a 15-year high against the dollar as investors bet Japanese authorities are not yet ready to curb the currency's strength.
New U.S. claims for unemployment insurance fell more than expected last week to their lowest level in two months and the U.S. trade deficit narrowed more than forecast in July as exports shot to the highest level since August 2008, painting a rosier picture for economic growth. For details, see[ID:nN09174403].
Fears of a double-dip recession have kept investors at bay, leaving them poorly positioned with the most recent economic data topping expectations, said Nick Kalivas, senior equity index analyst at MF Global in Chicago.
"The economic numbers in the last week or so have been able to beat expectations, so that's providing some confidence that the third quarter will finish firm."
The Dow Jones industrial average <.dji> rose 28.23 points, or 0.27 percent, to 10,415.24. The Standard & Poor's 500 Index <.spx> gained 5.31 points, or 0.48 percent, at 1,104.18. The Nasdaq Composite Index <.ixic> rose 7.33 points, or 0.33 percent, to 2,236.20.
Concerns about the European banking sector have weighed on investors this week, with new capital rules being discussed. [ID:nLDE6880GB]
"We might have a little bit of risk aversion going on since those Deutsche Bank headlines came out about the capital raise," said David Lutz, managing director of trading at Stifel Nicolaus Capital Markets in Baltimore.
He said there seemed to be some confusion as to whether the
German bank was raising money to cover sovereign debt exposure
or increase its stake in Deutsche Postbank
Capping gains in the Dow industrials, McDonald's Corp
Japanese Finance Minister Yoshihiko Noda said the ministry was conducting simulations on forex intervention. But the Japanese currency hardly budged as the perception remained that Tokyo is unlikely to intervene until the U.S. currency falls near 80 yen.
Noda's comments were also undermined somewhat when Bank of Japan Governor Masaaki Shirakawa said he did not talk about currencies and monetary policy at a government meeting. [ID:nTKV006408]
The dollar was flat at 83.81 yen
The euro is near a nine-year low against the yen hit in
late August. The low on Reuters data was 105.41 yen
The single currency was down 0.11 percent at $1.2706
against the dollar
STOCKS UP, BONDS DOWN
The December futures contract that trades in Chicago for the Nikkei 225 stock index was up 30 points at 9,140.
The FTSEurofirst 300 <.fteu3> index of top European shares finished 1 percent higher at 1,082.26 points after touching 1,083.46, the highest since late April, supported by U.S. macroeconomic numbers.
World stocks measured by MSCI All-Country World Index <.miwd00000pus> rose 0.58 percent.
Oil
Spot gold prices
U.S government bonds fell on better-than-expected U.S. economic data, boosting riskier assets and hurting demand for a U.S auction of 30-year debt.
The benchmark 10-year U.S. Treasury note
(Additional reporting by Leah Schnurr in New York, Editing by Dan Grebler)
Written By: Reuters
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