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Stocks rise, U.S. Dollar falls as tariff outlook is gauged

Stocks rise, U.S. Dollar falls as tariff outlook is gauged

The dollar also eased after reaching a three-week peak.

The European share market led the gains while Wall Street stocks were modestly higher following strong gains the previous session after Trump suggested that not all his promises would be fulfilled.

Threatened levies

Some countries could get a break.

U.S. shares pared gains following a Conference Board reading on consumer sentiment

Board fell

In March, sentiment dropped 7.2 points, to 92.9, which was below the 94.0 estimated. This is the latest in an ongoing trend of cooling.

"Confidence continues to decline, and this reflects the political division in America," said Brian Jacobsen. Chief economist at Annex Wealth Management, Menomonee Falls in Wisconsin.

Consumers will continue to do what they love, which is consume. Some people may be stocking up ahead of potential tariffs but they are likely to be the vocal and noticeable minority.

The Dow Jones Industrial Average increased 39.07 points or 0.09% to 42,622.39; the S&P 500 gained 13.66 points or 0.24% to 5,781.23; and the Nasdaq Composite advanced 54.78 points or 0.30% to 18,243.37. The MSCI index of global stocks rose 2.45 points or 0.29% to 854.18. Meanwhile, the pan-European STOXX 600 rose 0.72%. This was boosted by the Ifo Institute's survey that revealed a rise in German business morale during March.

In recent days, the stock market has shown signs of bottoming out after being under pressure from the uncertainty surrounding the tariff outlook. This was due to the possibility that the global economy could slow down and corporate profits would be affected.

The dollar index (which measures the greenback in relation to a basket) fell by 0.17%, to 104.12, after reaching a high of 104.46, a record for three weeks. The euro rose 0.05% to $1.0805.

Dollar fell 0.6% against the Japanese yen to 149.79, while the pound rose 0.15% to 1.2938.

Investors also assessed how tariffs might affect the Federal Reserve’s monetary policy.

Fed Governor Adriana

Kugler said

The central bank's policy is restrictive and well-positioned. However, progress towards achieving the 2% goal has slowed down and the recent increase in the goods inflation data are "unhelpful."

John A. Federal Reserve Bank of New York, President

Williams said

Firms and households "experience heightened uncertainty" regarding the future of the economy.

Raphael, the Atlanta Federal Reserve President, made similar comments.

Bostic said

On Monday, he said that he expects the Fed to only make one 25-basis-point cut this year.

The yield on the benchmark 10-year U.S. notes dropped 0.4 basis points, to 4.327%. Crude prices rose for a 5th straight session, on the assumption that global supply could decrease following Trump's announcement on Monday that tariffs would be imposed on countries who buy Venezuelan crude. However, gains were capped by the probability that OPEC+ will go ahead with its plans to increase output in May.

U.S. crude climbed 0.42%, to $69.41 per barrel. Brent rose 0.48% to $73.35 a barrel.

(source: Reuters)