U.S. Stocks Rise With Europe Equities; Euro Weakens to 2003 Low

U.S. stocks rebounded from the biggest drop in two months, while automakers and other exporters led European equities to the best gain in five weeks. The euro tumbled to the lowest since 2003 amid continued central-bank bond purchases, and emerging-market shares extended losses.

The Standard & Poor’s 500 Index climbed 0.2 percent at 9:31 a.m. in New York after the gauge wiped out its 2015 advance on Tuesday. Automakers and other exporters led the Stoxx Europe 600 Index 1.2 percent higher. Europe’s shared currency slid 0.7 percent to $ 1.0621, after reaching $ 1.0560.  Italy’s 10-year yield declined as much as six basis points to a record-low 1.162 percent. Developing-nation shares fell for a ninth day.

While the weaker euro makes European goods more competitive oversees, boosting demand, the dollar’s ascent to a 12-year high versus the shared currency sent American stocks tumbling Tuesday, on concern earnings are in worse shape than investors recognized. As the European Central Bank buys debt and China cuts borrowing costs to sustain growth, stronger U.S. jobs data has fueled speculation that the Federal Reserve may signal earlier interest-rate increases at its meeting next week.

Source : Bloomberg

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