Stocks gain; dollar jumps vs yen after BOJ governor remarks

  • Wall Street stocks higher early
  • Oil prices rose
  • Dollar set for biggest daily gain in about 2 weeks vs yen

NEW YORK, Jan 20 (Reuters) – Global stock prices rose on Friday, with Netflix shares boosting the S&P 500, while the dollar rose against the Japanese yen as the governor of the Bank of Japan reiterated that the central bank will maintain its ultra loose monetary policy. politics.

A world stock index was still on track for a weekly loss, however, on growing worries of an imminent global economic slowdown.

Netflix Inc ( NFLX.O ) rose nearly 7% in late morning U.S. trading. The video streaming company said late Thursday that it took on more subscribers than expected at the end of last year. In addition, its co-founder Reed Hastings has stepped down as chief executive.

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BOJ Governor Haruhiko Kuroda, who addressed the World Economic Forum in Davos, Switzerland, said the central bank would maintain its “extremely accommodative” monetary policy to meet its inflation target. of 2% in a stable and sustainable manner.

The Dow Jones Industrial Average (.DJI) rose 170.56 points, or 0.52%, to 33,215.12. The LS&P 500 (.SPX) gained 34.39 points, or 0.88%, to 3,933.24 and the Nasdaq Composite (.IXIC) added 150.71 points, or 1.39%, to 11,002.98.

The pan-European STOXX 600 index (.STOXX) rose 0.31% and MSCI’s gauge of worldwide stocks (.MIWD00000PUS) rose 0.80%.

Europe’s STOXX 600 index was recovering in 2023, driven by China’s reopening and falling natural gas prices.

The dollar was on track for its biggest daily gain against the yen in about two weeks after the BOJ governor’s remarks.

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“There are some doubts within the BOJ whether the boost in inflation in Japan will bring it back to 2%,” said Thierry Wizman, global FX and rates strategist at Macquarie in New York.

The dollar rose as high as 130.60 yen and was last up 1.2% at 129.91. The greenback was set for its biggest percentage gain since early January.

At the same time, investors worried that the US Federal Reserve and the European Central Bank may be too aggressive in tightening monetary policy to fight inflation.

US Treasury yields rose as investors questioned how much further the Fed would raise rates. In addition, investors bet that the recent bond rally may be excessive in the short term.

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Benchmark 10-year yields were last at 3.457%, a day after hitting 3.321%, the lowest since Sept. 13 and slightly above the 200-day moving average. Yields fell from 3.905% at the end of the year, and from a 15-year high of 4.338% on October 21.

In energy, US crude was recently up 0.06% at $80.38 a barrel and Brent was at $86.30, up 0.16% on the day.

Reporting by Caroline Valetkevitch in New York; Additional reporting by Gertrude Chavez-Dreyfuss in New York and Naomi Rovnick in London and Kevin Buckland; Editing by Sharon Singleton, Kirsten Donovan and David Gregorio

Our Standards: The Thomson Reuters Fiduciary Principles.


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