US Stocks Rose as Risk Appetite Returns

U.S. stocks followed Europe higher on Thursday after investors ventured into risky bets again with encouragement from some strong earnings and the dollar rose against the euro after remarks from Europe’s Central Bank chief fueled fears about the monetary union.



Oil prices stabilized after an early sell-off as investors returned their focus to the fundamentals of supply and demand as equity markets regained some lost ground.

The greenback rose against the euro after the ECB’s Mario Draghi reaffirmed that its 2.6-trillion euro ($2.97 trillion) asset purchase program will end this year and interest rates could rise after next summer even though the economic outlook has darkened and political turmoil looms in Italy.

While equity investors sought bargains and some were reassured by positive earnings and stronger technology stocks, they also voiced caution.

via Reuters

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza