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Stocks climb after current pullback, dollar slips

A gauge of global stocks pushed higher on Friday but remained on track for a weekly decline, while the dollar tired after its current rally but found support from a stronger than expected U.S. manufacturing survey.

U.S. stocks rose in early trade as the S&P 500 and Nasdaq tried to snap a five session streak of decreases, their longest considering that mid-April. Gains were broad, with each of the 11 major S&P sectors on the plus side, led by gains in utilities .

The U.S. currency rallied late last year as financiers bet President-elect Donald Trump's policies would drive development and inflation, meaning fewer more rate cuts from the Federal Reserve and greater yields on U.S. Treasuries, while European reserve banks are set to keep cutting rates.

The Fed's December policy declaration led financiers to reduce expectations for the amount of cuts from the reserve bank in 2025.

It's a complex image. In the beginning, investors were thinking back in November that (election outcomes) is a terrific thing since it is a clear market friendly outcome, stated Peter Andersen, creator of Andersen Capital Management.

The main problem individuals will start focusing on is if his ( Trump's) choices will be inflationary and, if they are, does that signal that the Fed will do an abrupt course change and begin raising rates.

The Dow Jones Industrial Average increased 174.10 points, or 0.41%, to 42,565.96, the S&P 500 rose 35.43 points, or 0.60%, to 5,904.03 and the Nasdaq Composite increased 151.10 points, or 0.78%, to 19,431.27.

MSCI's gauge of stocks across the globe rose 3.17 points, or 0.36%, to 842.95 - on track for its greatest daily portion gain considering that Dec. 24 - but still poised for its 3rd weekly decrease in the previous 4.

In Europe, equities were lower, with the pan-European STOXX 600 index off 0.5% but on track for a second straight weekly gain.

Trading volumes were on light at the end of a. holiday-shortened week.

The dollar index, which measures the greenback. against a basket of currencies, fell 0.05% to 109.18 but pared. losses after the Institute for Supply Management (ISM) said a. key production index increased more than anticipated 49.3 last. month, the greatest reading considering that March, from 48.4 in November.

The greenback was on track for its greatest weekly percentage. gain given that mid-November, up about 1.4%, and its 5th straight. week of gains, having struck a two-year high of 109.54 in the previous. session.

The euro was up 0.11% at $1.0276 but set for its. fifth straight weekly loss and its largest weekly portion. drop since mid-November.

Against the Japanese yen, the dollar damaged 0.04%. to 157.46 while the British pound reinforced 0.07% to. $ 1.2389.

The yield on benchmark U.S. 10-year notes was. down 0.4 basis point at 4.573%, remaining above the 4.5% mark. that has proven problematic for equities, after reaching a an. 8-month high of 4.641% previously today.

U.S. crude rose 0.83% to $73.74 a barrel and Brent. increased 0.46% to $76.28 per barrel, strengthened by colder. European and U.S. weather and extra financial stimulus. announced by China.

(source: Reuters)