The euro rallied against the US dollar on Tuesday after European Central Bank President Mario Draghi fueled market expectations the ECB will reduce stimulus later this year, while the dollar's weakness helped lift crude prices, APA reports quoting Reuters.
U.S. Senate Republican leaders postponed a vote on a healthcare overhaul on Tuesday after resistance from members of their own party, and President Donald Trump summoned Republican senators to the White House to urge them to break the impasse.
In comments delivered yesterday at the ECB's central banking forum in Portugal, Draghi said the rate-setting governing council might consider adjusting its monetary policy to take into account higher growth.
Financials entered Wednesday's session as the second-best-performing sector over the past month, rising 2.42 percent amid the prospects of higher interest rates.
The yield on the 10-year Treasury note pared earlier gains to trade at 2.223% recently, according to Tradeweb, having traded above 2.25% earlier in the day.
Compared to a recovery against the dollar after its 2 percent drop following the British elections, the pound has been unable to appreciate significantly against the euro.
By 0757 GMT, sterling was 0.3 percent lower at 88.80 pence per euro, its lowest level since November 9.
The healthcare legislation is the first plank of President Trump's domestic policy agenda, with investors eager for him to move onto his other plans, including tax cuts and infrastructure spending. Dow and S&P futures were both up 0.1 percent, suggesting a tepid start to trading on Wall Street. He cited European Central Bank research showing a broader measure of joblessness, including those who want to work more hours but can't, could be as high as 18 percent, nearly twice as high as the official rate. "This is a blow to the Trump agenda because it makes tax cuts all the more hard", said Greg McKenna, chief market strategist at AxiTrader.
The dollar index, which gauges the U.S. currency against a basket of six major counterparts, edged up 0.1 percent to 96.442 but was still well below its previous session high of 97.447. Google said it was considering an appeal.
US crude CLcv1 rose 2.07 percent to $44.28 per barrel and Brent LCOcv1 was last at $46.73, up 1.96 percent on the day.
Federal Reserve chief Janet Yellen had said in London that it was appropriate to "gradually" raise United States rates, although there was an acknowledgement that inflation had seen some slippage.
The Nasdaq Composite was up 65.84 points, or 1.07 percent, at 6,212.46. The Nikkei had lost 0.47% at the close, the Hang Seng was down -0.61%, while the ASX managed to outperform with a 0.73% gain as oil prices held slightly above United States dollars 44 per barrel. It was at $1.1324 recently, down 0.1% on the day.
The weaker dollar helped bolster spot gold, which was up 0.4 per cent at 1,251.59 per ounce.
General Mills rose 1.6 percent to $56.46 after the Cheerios maker's quarterly profit beat estimates.