Tuesday 25th April, 2017
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U.S. stocks halt 3-day drop as dollar, gold climb

U.S. stocks halt 3-day drop as dollar, gold climb

U.S. stocks rose with the dollar as econom­ic data bolstered con­fidence that the American economy is poised to acceler­ate. Gold rose and Treasuries erased losses as a slide in the price of crude sparked demand for haven assets.
 
The S&P 500 Index started the year with its biggest gain in four weeks, while the dollar jumped to the highest level in 14 years as U.S. manufacturing expanded. Oil fell more than $2 a barrel from the highest level in 18 months. European equities entered a bull market as the pace of German infla­tion doubled last month. Mex­ico’s peso slid after Ford Motor Co. canceled a $1.6 billion in­vestment in the country. U.S. natural gas futures sank the most in 14 months.
 
The post-election rallies in riskier assets resumed after a holiday break, as readings on manufacturing in China, in­flation in Germany and fac­tory output in the U.S. bol­stered optimism that growth is poised to accelerate. Byron Wien, the vice president of multi-asset investing at Black­stone Group LP, predicted the S&P 500 will surge 12 percent this year as economic growth gathers momentum.
 
The advance that start­ed in Asia and spread to Eu­rope faded somewhat dur­ing U.S. hours amid warnings that President-elect Donald Trump’s policies might have unintended consequences for the world’s largest econo­my. Lawrence Summers cited the possibility of protection­ist measures as well as chang­es to foreign policy among issues that are creating “ex­traordinary uncertainty.” An­alysts at Eurasia Group said Trump policies could contrib­ute to a level of global instabil­ity not seen since World War II. Morgan Stanley suggested the best-ever rally for a presi­dent elect would end by inau­guration day.

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