U.S. markets to consider G-7's weekend push to end excess currency volatility.
February 9, 2004: 5:42 AM EST
NEW YORK (CNN/Money) - U.S. stock markets will react Monday to the Group of Seven's weekend concern about currency volatility and the further signs that John Kerry will be the Democratic presidential nominee.
At 5:40 a.m. ET, futures pointed to a higher start for the major indexes.
G-7 finance ministers concluded their Boca Raton, Fla., meeting Saturday with a statement that "Excess volatility and disorderly movements in exchange rates are undesirable for economic growth." The wording was seen as an indication that the ministers want to control the slide in the dollar that has made Europe jittery about U.S. markets for its exports.
The ministers, in reiterating that exchange rate flexibility is desirable, added the wording "for major countries or economic areas that lack such flexibility." That was seen as a broad hint to China, which has pegged its yuan to the dollar and thus made its already lower-priced exports even more price-favorable in world markets.
But while the dollar gained ground against the yen early Monday, it was lower versus the euro.
There will also be some buzz about the presidential election now that John Kerry has strengthened his lead for the Democrats' nomination. The senator from Massachusetts won caucuses in Michigan, Washington state and Maine over the weekend.
Meanwhile, the incumbent isn't sitting by idly. In an interview aired Sunday on NBC's "Meet the Press," President Bush defended his economic record, saying his administration has righted the problems caused by the 2001 terrorist attacks, the Iraq war and the scandal that crippled confidence in corporate America.
The Dow Jones industrial average is coming off a winning week, capped by Friday's 0.9 percent advance after the January jobs report showed a decline in the unemployment rate. The Nasdaq composite index was slightly lower for the week after a 2.2 percent rally.
For details of Friday's rally, click above
Asian-Pacific stocks ended mostly higher Monday, but Tokyo's Nikkei index couldn't hold early gains and finished down 0.6 percent. European markets rose in early trading. (Check the latest on world markets)
Among U.S. stocks trading in Europe, Microsoft (MSFT: Research, Estimates) and Walt Disney (DIS: Research, Estimates) were both up modestly. The companies announced Sunday that Disney has agreed to use Microsoft's copy protection software in distributing films via the Internet.
Treasury prices were little changed in early trading, with the 10-year note yield at 4.08 percent.
Brent oil futures rallied 15 cents to $28.75 a barrel in London, where gold was higher.
The only economic report due Monday is wholesale inventories for December. Economists surveyed by Briefing.com expect to see a 0.3 percent increase, compared with a 0.5 percent rise in November.
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