Dubai: US stocks edged higher on Monday, snapping a three-day losing streak on bouncing crude, while geopolitical tensions supported gold prices.
The Dow Jones Industrial Average was 0.37 per cent higher at 20,527.95, after losing 1 per cent for the past three sessions. The S&P 500 was up 0.39 per cent to end up at 2,335.79.
“It’s bouncing crude that is helping markets now. Even the indication is that Fed won’t be tightening as aggressively as perceived by traders due to soft US data,” said Naeem Aslam, chief market analyst with Think Markets.
However, analysts say that traders would be looking at data points for more evidence to justify high valuations on stocks amid expectations that reflation [higher spending and inflation] trades may slow.
“We are due for a healthy correction, and the softness in the US data could be a trigger,” Aslam said.
Oil
Oil prices recovered partly from early losses amid signs of more output from the US.
Brent crude was 0.09 per cent higher at $55.94 (Dh205.4) per barrel. West Texas Intermediate (WTI) was flat at $53.16 per barrel.
Both benchmarks had risen last week for a third consecutive week, with Brent adding 1.2 per cent over the four days before the Good Friday holiday and WTI up 1.8 per cent.
Gold which is often considered as a barometer on geopolitical risk rose, extending gains from the highest level in five months. Spot gold was up 0.12 per cent at $1,287.29 an ounce. Gold may touch $1,350 in the next few weeks on weaker dollar and due to other uncertainties, Aslam said.