(Updates to U.S. trading; changes byline, dateline, pvs LONDON)
* U.S. consumers most confident since 2000 - survey
* Wall Street shares up as banks gain
* Dollar steady above 4-month lows as markets await Fed
* Oil prices rise with Libyan output disruption
By Saqib Iqbal Ahmed
NEW YORK, March 28 Stocks recovered on Tuesday
as investors chose to look beyond U.S. President Donald Trump's
setback on healthcare reform and awaited comments from several
Federal Reserve officials, including Fed Chair Janet Yellen.
The dollar steadied as the promise of more rises in Federal
Reserve interest rates this year helped it recover from
multi-month lows hit on Monday, and U.S. Treasury debt prices
inched lower after strong U.S. consumer confidence data.
Advancing shares in Asia and Europe helped boost the MSCI's
all-country world equity index, which hit a
near-two-week low on Monday. The index was up 0.52 percent.
The index found further support after Wall Street stocks
inched higher, boosted by financials, after a survey showed U.S.
consumers' confidence in the economy rose in March to its
highest level since December 2000. The cutoff date for the
survey was March 16.
"This market is driven by two things - the hope of policy
agenda getting put into place and improving fundamentals," said
Art Hogan, chief market strategist at Wunderlich Equity Capital
Markets in New York.
Investors were awaiting Fed Chair Janet Yellen's speech at a
conference in Washington, where she could provide some insight
into the timing of the central bank's next interest rate hike.
Other Fed officials scheduled to speak at separate events
include Fed Board Governor Jerome Powell, Dallas Fed President
Robert Kaplan and his Kansas City counterpart, Esther George.
The Dow Jones Industrial Average rose 76.87 points,
or 0.37 percent, to 20,627.85, the S&P 500 gained 9.31
points, or 0.40 percent, to 2,350.9 and the Nasdaq Composite
added 12.33 points, or 0.21 percent, to 5,852.70.
European shares rose, boosted by strong results and
deal-making across the region. Europe's broad FTSEurofirst 300
index was up 0.61 percent at 1,488.02.
U.S. Treasury debt prices slipped in generally below-average
volume after data showed U.S. consumer confidence at a 16-year
"This is an impressive gain... and a notable disconnect with
10-year yields under 2.38 percent, but it surely reflects the
ongoing bid for equities," said Ian Lyngen, head of U.S. rates
strategy at BMO Capital Markets in New York.
Benchmark 10-year notes were flat to up in
price, after trading higher all morning, to yield 2.368 percent,
down slightly from 2.375 percent on Monday.
The dollar steadied broadly as a general risk-off mood in
currency markets offset comments from Federal Reserve officials
that suggested the U.S. central bank was poised to continue its
The dollar index was trading little changed in a
volatile session, after hitting a four-and-a-half month low on
In emerging markets, the South African rand fell
after Finance Minister Pravin Gordhan was ordered home by the
president, triggering speculation of an imminent cabinet
A severe disruption to Libyan oil supplies and comments from
officials suggesting OPEC could extend its production cuts deal
to the end of the year boosted oil prices.
Brent crude was up 0.88 cents, or 1.73 percent, at
$51.63 a barrel. U.S. crude was up 0.81 cents, or 1.7
percent, at $48.54 per barrel.
(Reporting by Saqib Iqbal Ahmed; Additional reporting by
Gertrude Chavez-Dreyfuss in New York and Yashaswini Swamynathan
in Bengaluru; Editing by Nick Zieminski)