U.S., Europe shares climb as dollar recovers on data
* U.S., European stocks helped by return of risk appetite
* Goldman Sachs and Netflix results drive Wall St higher
* China Q1 GDP up 6.8 pct, industrial output misses forecast
* Upbeat data lifts dollar, short-dated Treasury yields
* Graphic: World FX rates in 2018 http://tmsnrt.rs/2egbfVh
(Updates to Wall Street close; updates throughout)
By Hilary Russ
NEW YORK, April 17 (Reuters) - U.S. and European shares
climbed on Tuesday on quarterly earnings and a renewed appetite
for risk, while the dollar rose off a two-week low and 2-year
Treasury yields touched a decade high after economic data
supported expectations of further rate hikes by the Federal
Robust earnings from Netflix, Goldman Sachs
and healthcare companies drove gains on Wall Street and boosted
optimism about what is expected to be the strongest earnings
season in seven years.
S&P 500 companies are expected to report an 18.6 percent
jump in first-quarter profit on average, according to Thomson
The Dow Jones Industrial Average rose 213.59 points,
or 0.87 percent, to 24,786.63, the S&P 500 gained 28.55
points, or 1.07 percent, to 2,706.39, and the Nasdaq Composite
added 124.81 points, or 1.74 percent, to 7,281.10.
MSCI's gauge of stocks across the globe
gained 0.71 percent.
The euro flattened after rising above $1.24 to a
three-week high on mixed Chinese economic data, easing fears of
Syria retaliation fears and overall renewed risk sentiment.
Sterling was last trading at $1.4289, down 0.32
percent, after hitting nearly $1.438, its highest level since
Britain's vote in June 2016 to exit the European Union.
The dollar index, which measures the greenback
against six other major currencies, rose 0.06 percent,
strengthened by the weaker euro and sterling and by
stronger-than-expected U.S. housing starts in March and a
positive reading on industrial production.
Short-dated Treasury yields rose for a second day. The
spread between 2- and 10-year Treasury bond yields
hit 43.2 basis points, the lowest level since
"Even with the bad weather in March, the data has really
strengthened, supporting the view that the Fed will most likely
have to hike rates in June," said John Herrmann, director of
U.S. rates strategies at MUFG Securities in New York.
European shares advanced, with the pan-European
FTSEurofirst 300 index rising 0.8 percent. Germany's
Deutsche Boerse DAX index closed 1.57 higher.
Oil prices steadied as investors took profit on last week's
rally and amid concern over the potential for supply
U.S. crude rose 0.36 percent to $66.46 per barrel
and Brent was last at $71.52, up 0.14 percent.
In China, stocks in Shanghai closed near a one-year
low, after a U.S. move to ban American companies from selling
components to Chinese telecom equipment maker ZTE Corp
hurt tech stocks.
However, China's economy grew 6.8 percent in the first
quarter from a year earlier.
U.S. sanctions on major Russian producer Rusal drove
aluminum prices to almost $2,500 a tonne, their highest
since mid 2011, before profit-taking reversed most gains.
Rusal accounts for 6 to 7 percent of global
(Additional reporting by Kate Duguid, Ayenat Mersie and
Gertrude Chavez-Dreyfuss in New York; Editing by Bernadette Baum
and Leslie Adler)
First Published: 2018-04-17 02:28:22
Updated 2018-04-17 22:33:46
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