U.S. Stocks Rise, Dollar Falls as Data Support Fed Rate View

U.S. stocks rose and the dollar fell as mixed data on inflation and jobs bolstered the Federal Reserve’s argument for a slow approach to lifting interest rates. European equities slid amid growing tension over Greece.

The Standard & Poor’s 500 Index climbed 0.4 percent at 9:31 a.m. in New York. The Bloomberg Dollar Spot Index dropped 0.6 percent. Ten-year Treasuries erased gains, leaving the yield at 2.32 percent. The Stoxx Europe 600 Index slid 0.6 percent, while European bonds advanced. Gold jumped 2.1 percent.

Core consumer prices rose less than forecast in May, while fewer Americans than estimated filed for unemployment benefits last week. The central bank yesterday signaled it will raise rates gradually as officials look for more decisive evidence on growth. Finance chiefs gathered in Luxembourg in an attempt to resolve a standoff over aid to Greece.

The so-called core measure increased 0.1 percent, the smallest gain this year, Labor Department figures showed. The median forecast of 82 economists surveyed by Bloomberg called for a 0.2 percent rise. Another report showed fewer Americans than forecast filed for unemployment benefits last week.

Source : Bloomberg


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