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US stocks mixed as oil stabilises, dollar slips

Dubai - US stocks sought to rebound from two days of losses as the bear market in crude prices showed signs of spilling into the broader market even as oil stabilised. The dollar stayed lower as US jobless claims came in slightly above expectations, while gold advanced.

Energy companies led declines in the S&P 500 Index and European equities, with a bounce for West Texas Intermediate crude after yesterday’s plunge having limited impact. Treasuries advanced as data showed a gain in filings for US unemployment benefits last week. Gold continued to claw its way back from a one-month low and silver jumped.

So far damage from oil’s prolonged rout appears to be industry-specific rather than a reflection of rising concerns about global growth, and that may help limit contagion. But investors will be wary of the downward pressure on inflation and its potential impact on central bank policies.

Also in focus are the newly-started negotiations on Britain’s split with the European Union. Prime Minister Theresa May, in the first EU summit since the election, will outline how the UK proposes to treat the bloc’s citizens after it leaves.

Here’s what’s ahead for investors on Thursday:

It’s been a busy week for Fed officials, and Thursday will be especially active. Governor Jerome Powell, St. Louis Fed President James Bullard and Cleveland Fed President Loretta Mester are all speaking at events.

The Fed also releases results of part one of its annual bank stress tests, after the close of US markets. EU leaders start a two-day summit in Brussels, Theresa May’s first since her disastrous election. Mexico’s central bank will probably raise its key rate for a seventh straight meeting, as inflation has more than doubled in the last year.

Here are the main market moves:

Commodities

West Texas oil rose 0.6% to $42.78 a barrel as of 15:31. It tumbled 2.3% in the previous session. Gold climbed 0.3% to $1 250.56 an ounce, extending gains after halting a five-day slide on Wednesday.

Stocks

The S&P 500 Index rose less than 0.1%. The underlying gauge slipped 0.1% on Wednesday, with Exxon Mobil and Chevron contributing the most to the decline. 

The Nasdaq 100 Index was little changed after rising 1% on Wednesday. The Europe Stoxx 600 dropped 0.2%, declining for a third straight session as energy shares lost 1.1%. MSCI’s emerging-market index advanced 0.2%.

Currencies

The yen climbed less than 0.1% to 111.32 per dollar, strengthening for a third day.  The Bloomberg Dollar Spot Index dropped 0.1% Sterling also fell 0.1% to $1.2663 after rising 0.3% on Wednesday. The euro was little changed at $1.1164.

Bonds

The yield on 10-year Treasuries fell two basis points to 2.14%. Yields on European government bonds were mixed, with that of benchmark gilts in the UK falling three basis points and those in France little changed.

Asia

Technology companies gave a lift to Asian equities, helping the MSCI Asia Pacific Index advance 0.3%. Australia’s S&P/ASX 200 Index jumped 0.7%, after tumbling 1.6% on Wednesday to erase its gain for the year.

Japan’s Topix was weighed down by strength in the yen. The Shanghai Composite Index slipped 0.3%, after climbing on Wednesday on MSCI’s decision to include mainland shares in its indices.

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