The Stoxx Europe 600 Index advanced 0.5% by 9:33 a.m. in New York, while the Standard & Poor’s 500 Index added less than 0.1% after its biggest gain in a month. The euro slid to the lowest against the dollar in more than two years, while the greenback advanced to a five-year high versus major peers. Russia’s currency rebounded amid speculation the central bank intervened to stem losses. West Texas Intermediate added 0.9% and gold rose 0.4%.
Services and manufacturing in the euro area grew less than initially estimated, Markit Economics said today before European Central Bank President Mario Draghi leads a policy meeting tomorrow. Companies in the U.S. added fewer workers than forecast, figures from ADP Research Institute showed before a government labor report on Dec. 5. Resilient domestic demand, supported by falling energy costs, is encouraging employers to add to staff even as global economies struggle.
“I don’t think the data we got, although a miss, changes the narrative that the U.S. economic recovery is still solid,” Anastasia Amoroso, global market strategist at J.P. Morgan Funds, said by phone. The JPMorgan Chase & Co. division oversees about $500 billion in assets. “The catalysts for this week are more tomorrow and Friday. Investors will be clamoring to hear some assurance from Draghi that if needed, he will consider another round of asset purchases.”
The S&P 500 (CME:SPH15) closed 0.3% below a record reached on Nov. 28 as weaker Black Friday sales and oil prices dragged stocks lower. The gauge has rebounded 11% from a low in October amid optimism the economy is strong enough to withstand tighter monetary policy.
The Bloomberg Dollar Spot Index, which tracks the greenback against 10 trading partners, rose 0.2% to the highest since 2009 amid speculation recent data backs the case for higher interest rates as Japan and Europe ease policy.
The dollar rose 0.1% to 119.33 yen after reaching 119.48, the highest since August 2007. It appreciated 0.4% to $1.2333 per euro and touched $1.2321, the strongest level since August 2012. The euro weakened 0.3% to 147.20 yen.
“The dollar’s uptrend is likely to continue and that’s driven equally, if not more, by what’s going on outside the U.S. as well as what’s happening in the U.S.,” said Steven Barrow, head of Group of 10 foreign-exchange research at Standard Bank Plc in London.
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