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GLOBAL MARKETS-Dollar rises on inflation data; Wall St. gains
October 15, 2015 / 6:23 PM / 2 years ago

GLOBAL MARKETS-Dollar rises on inflation data; Wall St. gains

* Financial sector 1.9 pct rise drives S&P 500 gain
    * Dollar rises, U.S. stocks gain after data, earnings
    * U.S. crude dips amid lingering global glut concerns

 (Updates with market moves, prices, commentary)
    By Sinead Carew
    NEW YORK, Oct 15 (Reuters) - The dollar strengthened, helped
by stronger-than-expected underlying domestic inflation data,
and U.S. stocks were driven higher by the financial sector and
some bank earnings reports.    
    The dollar was up 0.4 percent after a three-day slide
against a basket of currencies, on track for its biggest gain
since Sept. 30. A 0.2 percent rise in September
core U.S. consumer prices revived bets inflation is edging
closer to the Federal Reserve's 2 percent target. 
    The data also pushed up U.S. Treasuries yields slightly as
it renewed some hopes for a 2015 Federal Reserve interest rate
    "The inflation picture looks less grim. That gave some
stability to the dollar," said Sebastien Galy, currency
strategist at Deutsche Bank in New York.
    Neil Bouhan, government bond strategist at BMO Capital
Markets in Chicago said the data implies some "possibility that
the Fed could still build a 2015 case for liftoff."
     U.S. stocks snapped two days of losses, helped by strength
in some third-quarter earnings reports. While the benchmark S&P
500's financial sector led the pack with banks as the
top drivers, results were mixed. 
    Citigroup was the index's biggest influencer with a 4
percent rise after it beat estimates. Goldman Sachs 
shares rose 2.4 percent even after it missed expectations. 
    But Jim Paulsen, chief investment officer at Wells Capital
Management in Minneapolis, was not encouraged by earnings so far
and argued that weak regional surveys monitoring economic
activity makes a closer Fed liftoff unlikely. 
    "You've got traders taking bets on which way it's going to
break. That could be disrupted if there was enough fundamental
reports," he said, but noted that none of the fundamental
reports "have been decisive enough to take you away from the
technical battle that's going on." 
    The Dow Jones industrial average rose 132.01 points,
or 0.78 percent, to 17,056.76, the S&P 500 gained 17.33
points, or 0.87 percent, to 2,011.57 and the Nasdaq Composite
 added 44.67 points, or 0.93 percent, to 4,827.52.
    Oil prices fell for the fourth straight day as the U.S.
government reported a larger-than-expected crude stockpile
build. U.S. crude was down 1.1 percent at $46.15 per barrel
while Brent fell 0.7 percent to $48.81. 
    Other commodities were doing better with gold up 0.2
percent while copper rose 0.6 percent.   
    European shares snapped a three-day slide and the regional
FTSEurofirst 300 closed up 1.4 percent on prospects for
more monetary policy support. European Central Bank policymaker
Ewald Nowotny said new efforts are needed to boost price growth
as inflation keeps missing the European target. 
    MSCI's emerging share index was up 2 percent after
a two-day fall and hit its highest level since Aug. 13.
    "People's fears of a global slowdown are maybe bottoming
out," Paulsen said.

 (Additional reporting by Marc Jones in London, Sam Forgione in
New York, Abhiram Nandakumar in Bengaluru; Editing by Nick
Zieminski and Meredith Mazzilli)

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