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GLOBAL MARKETS-Dollar rises on hawkish comments; stocks end up

Published 09/23/2020, 04:43 AM
Updated 09/23/2020, 04:50 AM

* Fresh lockdown worries spook investors
* Fed's Evans' comment support USD
* Graphic: 2020 asset performance http://tmsnrt.rs/2yaDPgn
* Graphic: World FX rates in 2020 http://tmsnrt.rs/2egbfVh


(Updates to U.S. stock market close)
By Rodrigo Campos
NEW YORK, Sept 22 (Reuters) - The U.S. dollar continued to
rise on Tuesday after hawkish remarks from a Federal Reserve
speaker, while stocks ended higher with a boost from Amazon even
as curbs to control the spread of COVID-19 raised the fear of a
second wave of lockdowns.
Crude rose after a hard fall on Monday, while stocks in
Europe and Wall Street more than offset the losses elsewhere.
The dollar index =USD was having its strongest two-day run
since April.
Sterling took a hit after British Prime Minister Boris
Johnson told Britons to go back to working from home, along with
new curbs on pubs, bars and restaurants that he said could be in
place for as long as six months without some form of vaccine.
"As we all know, the virus doesn't live in a vacuum and what
you see in one country or region will affect other places.
Economically it could have an effect," said Minh Trang, senior
FX trader at Silicon Valley Bank.
The dollar also got a lift after Chicago Fed President
Charles Evans mentioned the prospect of raising interest rates.
"All we've been hearing from the Fed for the last few months
is we're not going to hike rates at any point in the foreseeable
future. Then Evans came in and challenged that narrative, so the
market got caught off-guard," said Erik Nelson, macro strategist
at Wells Fargo Securities in New York.
The dollar index =USD rose 0.403%, with the euro EUR=
down 0.5% to $1.171.
The Japanese yen JPY= weakened 0.29% versus the greenback
at 104.97 per dollar, while Sterling GBP= was last trading at
$1.2738, down 0.59% on the day.
The 5.7% lift from Amazon AMZN.O was large enough to boost
stocks on Wall Street even as the United States reached 200,000
COVID-19-related deaths and as the passage of more stimulus to
help the coronavirus-battered economy became more unlikely.
The Dow Jones Industrial Average .DJI rose 140.48 points,
or 0.52%, to 27,288.18, the S&P 500 .SPX gained 34.51 points,
or 1.05%, to 3,315.57 and the Nasdaq Composite .IXIC added
184.84 points, or 1.71%, to 10,963.64.
The pan-European STOXX 600 index .STOXX rose 0.20% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.43%.
Emerging market stocks lost 0.69%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.01%
lower.
U.S. Treasury debt yields edged lower most of the session
but ended little changed as stocks rose, with benchmark 10-year
notes US10YT=RR recently yielding 0.6708%, from 0.671% late on
Monday.
Oil prices rose as analysts took the view that renewed
lockdown restrictions in Europe would have only a limited impact
on fuel demand, partly reversing a steep drop in prices the
previous day.
U.S. crude CLc1 recently rose 0.61% to $39.60 per barrel
and Brent LCOc1 was at $41.74, up 0.72% on the day.
Spot gold XAU= dropped 0.6% to $1,901.41 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
Coronavirus vs financial markets https://tmsnrt.rs/300KB8r
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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