US open: Stocks in the green as dollar rebounds; Dow flirts with 20,000
US equity markets were in the green on Tuesday as the dollar rebounded and the Dow flirted with the 20,000 mark.
The blue-chip index has recently been within touching distance of hitting the target but has pulled back.
The Dow Jones Industrial Average added 0.44% to 19,969.89, the S&P 500 rose 0.31% to 2,269.58, and the Nasdaq gained 0.35% to 5,476.29 at 1506 GMT.
Meanwhile, the dollar was up 0.47% versus sterling to 0.8108, 0.28% against the euro to 0.9640, and 0.85% versus the yen to 118.09.
Earlier, the euro fell to its lowest level since 2003 against the greenback, falling 0.5% to $1.0355, while the differential between German and US 10-year yields widened to 1989 levels.
Michael Hewson, chief market analyst at CMC Markets, said: “The dollar has once again swept all before it, rising the most against the yen after the Bank of Japan left interest rates unchanged, while updating its economic outlook for the Japanese economy.
“The rebound appears to have accelerated in the last 24 hours in the wake of yesterday’s speech by Federal Reserve chair Janet Yellen to students in Baltimore where she waxed lyrical about the health of the US jobs market. This bullishness on her part would appear to suggest that more rate rises could well be on the way in fairly short order, and in so doing has pushed the dollar index to new 14-year highs.”
Elsewhere in Europe, the main indices were firmer after the Italian government said it will seek parliamentary approval to borrow up to €20bn to support its banking sector and potentially rescue Banca Monte dei Paschi di Siena. If the bank is unable to arrange a private sector bailout, a state rescue may come as early as this week.
Investors also largely shrugged off news of three attacks in Europe on Monday. A truck ploughed into a Christmas market in Berlin, killing twelve people and injuring 48 in what is suspected to have been a terrorist attack.
In Turkey, the Russian ambassador was shot dead by an off-duty policeman who appeared to be protesting Russia’s involvement in Aleppo, and in Zurich, three people were injured in a gun attack at a mosque.
In oil markets, Brent crude rose 1.64% to $55.84 a barrel and West Texas Intermediate was up 1.13% to $53.67 at 1450 GMT.
Gold on Comex decreased 1.16% to 1,129.50 per troy ounce.
In corporate news, Conatus Pharmaceuticals rocketed 164.29% after it announced a licensing deal with Swiss drugmaker Novartis for a liver disease treatment late on Monday.
Carnival was up 1.6% as the cruise company beat forecasts for fourth quarter earnings and revenue, while Blackberry gained 3.7% after earnings surprised analysts, but revenue missed forecasts.
General Mills dipped 2.68% as the food company’s earnings fell 9%, missing forecasts and as it lowered its outlook for the year.
Darden Restaurants rose 0.42% as the company's second quarter profit and revenue grew, boosted by sales from the Olive Garden chain.
Facebook was in focus after the European Commission accused the company of providing misleading or incorrect information during its 2014 investigation of its $19bn planned acquisition of WhatsApp.
FedEx and Nike are due to post earnings after markets close.