NEW YORK (Reuters) – The dollar weakened on Tuesday after US President Donald Trump hit the Federal Reserve for raising interest rates, while global equity markets rose as strong economic and earnings growth favored the shares in a relatively benign environment.
FILE PHOTO: On this image illustration of June 22, 2017 you can see a note of the American dollar. REUTERS / Thomas White / illustration / file photo
Wall Street shares rose after global stock exchanges, with the benchmark S & P 500 coming closer to a historic high.
Trump said in an interview with Reuters on Monday that he was "not happy" with the Fed under his appointed chairman Jerome Powell, for raising rates and that the US central bank should do more to boost the economy .
Trump also accused China and Europe of manipulating their currency. The euro EUR = has dropped about 3.8 percent this year compared to the dollar, while the Chinese yuan CNY = lost 5.1 percent this year against the greenback.
"It seems that Mr. Trump wants to keep the US dollar on the weak side to remain competitive," said David Madden, CEO of CMC Markets.
The dollar index .DXY, which tracks performance against a basket of six major currencies, fell by 0.31 percent Tuesday and has fallen by almost 1.2 percent in the past four days, the worst such run since late March.
The weakness of the dollar eased the pressure on many emerging markets, which have struggled in recent weeks, as concerns about Turkey caused a sell-off in assets from emerging markets around the world.
MSCI & # 39; s benchmark index for emerging stocks. MSCIEF rose by 1.03 percent and was on schedule for a third day's profit after Trump's comments.
The number of MSCI shares around the world .MIWD00000PUS increased by 0.4 percent, while the pan-European FTSEurofirst 300 index .FTEU3 of leading regional equities rose 0.25 percent, lifted by earnings in Bayer, Total and Novo Nordisk.
More encouraging revenue reports, led by Medtronic Plc, manufacturer of medical devices (MDT.N) recorded better than expected quarterly earnings, raised US equities and equities in Europe.
Sales growth and operating margins for companies in the S & P 500 records in the second quarter and earnings should be strong for the coming quarters, said Michael Geraghty, equity strategist at Cornerstone Capital Group.
But a multitude of price / earnings income of 20 makes it difficult for stocks to rise significantly, making income comparisons more difficult and slowing earnings growth, he said.
& # 39; The reason we are awake is because we are not there, & # 39; said Geraghty. "There is no question of Turkey today that weighs on stocks, there has been no escalation in the trade and the tariff situation."
The S & P 500 hovered just below its record high of January 26 and was about to mark an important milestone on Wednesday, when the bull market was 3.463 days old, making it the longest streak in the eyes of some market watchers.
The Dow Jones Industrial Average .DJI rose by 80.92 points or 0.31 percent to 25,839.61. The S & P 500 .SPX achieved 11.3 points, or 0.40 percent, to 2,868.35 and the Nasdaq Composite .IXIC added 57.48 points, or 0.73 percent, to 7,878.49.
Trump, who criticized the Fed when he was a candidate, said in the interview that other countries benefited from the movements of their central banks during difficult trade negotiations, but the United States received no support from the Fed.
"During this period, I should get some help from the Fed, the other countries are accommodated," Trump said.
The dollar index .DXY fell by 0.41 percent, while the euro gained EUR 0.44 percent to $ 1.153.
The Japanese yen weakened 0.31 percent against the greenback at 110.43 per dollar.
US Treasury yields were on the rise in risk appetite and investors waited for the minutes at the Fed meeting on Wednesday and a speech by Powell in Jackson Hole, Wyoming, on Friday.
Expectations for two additional rate hikes by the Fed were lower this year than a day after Trump's comments.
Benchmark American treasury 10-year banknotes US10YT = RR dropped 7/32 in price to raise 2,846 percent.
Oil rose the highest in a week, supported by the prospect of price support by US sanctions against Iran, although the American-Chinese trade dispute kept traders and analysts cautious.
Brent's raw LCOc1 futures rose 28 cents to $ 72.49 a barrel and the US crude CLcv1 rose 82 cents to $ 67.25 per barrel.
Reporting by Herbert Lash; Edit by Meredith Mazzilli