US markets gain after price data; pound weakens

  • The S&P 500 added to its best advance since January, with major media shares leading gains
  • Boeing shares lost 2.8%

Most US stocks edged higher and the dollar slipped on speculation an unexpectedly weak inflation reading will give the Federal Reserve room to stay patient on rate hikes. The pound retreated ahead of a key Brexit vote Tuesday.

The S&P 500 added to its best advance since January, with major media shares leading gains. Boeing again weighed on the measure, as more countries closed air space to the 737 Max plane. The company’s shares lost 2.8%. The dollar fell and 10-year Treasury yields turned negative after core inflation cooled. The pound slumped and UK bonds pared a drop after the chances lawmakers approving a Brexit deal lessened. Crude oil climbed after Saudi Arabia was said to extend deep supply cuts.

Britain’s exit from the European Union continues to dominate markets in the region. The pound started the day higher after Prime Minister Theresa May announced a revised divorce deal, but dropped by as much as 1.1% versus the dollar as Attorney General Geoffrey Cox said the risks surrounding the Irish backstop — a major sticking point for those who support Brexit — were unchanged. Alongside Brexit developments, investors have a slew of economic data to digest this week. The latest inflation reading came amid falling prices for autos and prescription drugs, adding to evidence the American economy is in no danger of overheating. In the coming days the focus will turn to Chinese production and retail sales, as well as a Bank of Japan policy decision.

And these are the main moves in markets:

Stocks

The S&P 500 Index increased 0.2% as of 9:44 am New York time. The Dow Jones Industrial Average fell 0.2%. The Stoxx Europe 600 Index fell 0.2%. The UK’s FTSE 100 Index gained 0.1%. The MSCI Asia Pacific Index advanced 1.2%, the biggest gain in almost six weeks. The MSCI Emerging Market Index climbed 1%.

Currencies

The Bloomberg Dollar Spot Index declined 0.1%. The euro advanced 0.3% to $1.1275. The British pound decreased 0.4% to $1.3095. The Japanese yen increased less than 0.05% to 111.20 per dollar.

Bonds

The yield on 10-year Treasuries gained one basis point to 2.65%. Germany’s 10-year yield increased less than one basis point to 0.07 percent. Britain’s 10-year yield advanced one basis point to 1.189 percent.

Commodities

Gold increased 0.4% to $1,297.98 an ounce. West Texas Intermediate crude gained 0.8% to $57.23 a barrel, the highest in more than two weeks.



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