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GLOBAL MARKETS-Stocks rise after ISM data, euro down ahead of ECB meeting
June 4, 2014 / 5:45 PM / in 3 years

GLOBAL MARKETS-Stocks rise after ISM data, euro down ahead of ECB meeting

* U.S. shares gain on strong U.S. services sector data
    * European shares flat, euro lower ahead of ECB meeting
    * Bond yields rise on U.S. services sector data

 (Updates prices, adds close of European stock market)
    By Sam Forgione
    NEW YORK, June 4 (Reuters) - U.S. shares rebounded slightly
on Wednesday after strong data on the U.S. services sector,
while soft European economic data weighed on European equities
and weakened the euro a day ahead of a closely watched European
Central Bank policy meeting. 
    Better-than-expected data on U.S. services sector growth
drove gains on Wall Street, reversing earlier losses on an
industry report that showed weakness in the U.S. private-sector
labor market. Yields on benchmark 10-year U.S. Treasury notes
edged higher. 
    MSCI's all-country world index of equity
performance in 45 countries rose 0.12 point, or 0.03 percent, to
422.16, while the pan-European FTSE Eurofirst 300 index
of regional shares closed flat at 1,374.75.
    The Institute for Supply Management said its U.S. services
sector index rose to 56.3 in May from 55.2 in April, topping
expectations for a read of 55.5. A reading above 50 indicates
    "The ISM number was a clear beat and reversed us," said
Robert Francello, head trader at Apex Capital in San Francisco.
"People wanted to see something at least solid to keep us stable
before the ECB tomorrow."
    Earlier, the ADP National Employment Report showed that
about 179,000 private-sector jobs were added in May, well below
the 210,000 that had been expected. April's job gains were
revised downward by 5,000. 
    The government will release its more comprehensive labor
report on Friday.
    The Dow Jones industrial average rose 19.96 points or
0.12 percent, to 16,742.3, the S&P 500 gained 4.37
points, or 0.23 percent, to 1,928.61, and the Nasdaq Composite
 added 21.138 points, or 0.5 percent, to 4,255.219.
    The euro was last down 0.17 percent, at $1.3604,
after data showed the 18-nation bloc's economy expanded by just
0.2 percent in the three months to March, cementing investor
expectations that the ECB is headed for further monetary easing
on Thursday. 
    "It seems unlikely the ECB would disappoint in terms of
action," said CMC Markets analyst Jasper Lawler.
    The dollar held near a 3-1/2-month high against a basket of
currencies after getting a lift from rising Treasury rates
following the services sector data. The dollar index,
which tracks the greenback versus a basket of six currencies,
rose 0.089 point, or 0.11 percent, to 80.643.
    Benchmark 10-year Treasury notes were last down
3/32 in price to yield 2.6039 percent, with the yield rising to
levels not seen since mid-May. 
    Brent crude for July delivery erased earlier gains
to edge lower and was last down 20 cents, or 0.18 percent, at
$108.62 a barrel. U.S. crude was last up 1 cent, or 0.01
percent, at $102.67 per barrel.

 (Reporting by Sam Forgione; additional reporting by Marc Jones
and Lionel Laurent in London, Blaise Robinson in Paris, and Ryan
Vlastelica in New York; Editing by Chizu Nomiyama and Leslie

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