The MSCI Emerging Markets Index advanced 2.1 per cent, the first gain in three days. Benchmark equity gauges in China, South Korea, Turkey, Thailand and the Philippines climbed at least 1 per cent.
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EUR/USD likely gained support at 1.1133, the low from October 1 and was likely met with resistance at 1.1713, the high from August. 24.
The dollar rose 0.3 percent against a basket of major currencies on Friday to 94.644, well clear of a seven-week low of 93.806 hit the previous day.
“While the market remains dubious about any Fed tightening action this year, the focus may shift on the European Central Bank next week and if European Central Bank president Mario Draghi and company decide to rev up the quantitative easing programme, the euro could come under further selling pressure over the near-term horizon”.
New Zealand dollar and the yen among the biggest gainers for developed-nation currencies. Firstly, U.S. retail sales grew at a slower pace than anticipated, rising only 0.1% last month, just half of the expected rate.
The upbeat inflation data gave the dollar a few relief, which has been battered by a run of poor United States indicators and concerns about China’s economy undermining prospects of the Fed hiking rates this year.
Lower debt yields in turn hit the dollar, which struggled near a 5-week low of 118.56 yen (JPY=).
Adding to the weak data was the Labour Department’s inflation report that showed producer prices fell 0.5 per cent in September, the sharpest drop since January. The Fed Reserve would like to see inflation firm considerably before it raises short-term interest rates for the first time in almost a decade.
Both groups said they were more concerned about the falling value of the euro against the USA dollar than declines of the Chinese yuan, Canadian dollar, Japanese yen or Mexican peso.
The regional FTSEurofirst 300 rose 1.4 per cent.
US stocks snapped two days of losses, also helped by a few strength in third-quarter earnings.
Crude oil fell yesterday on expectations U.S. government data will show a rise in inventories.
Spot gold was up 0.1 percent at $1,185.73 an ounce at 2:56 p.m. EDT (1856 GMT), after climbing to $1,190.63, the highest since June 22 and the fifth straight day higher.
The Dow Jones industrial average rose 57.52 points, or 0.34 per cent, to 16,982.27, the S&P 500 gained 9.27 points, or 0.46 per cent, to 2,003.51 and the Nasdaq Composite added 35.80 points, or 0.75 per cent, to 4,818.65.
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Brent’s front-month, November, finished down 44 cents at $48.71 before expiring and going off the board. Neither EconoTimes nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.
