Page 25 - ARUBA TODAY

BUSINESS Friday 15 June 2018
A25

Stocks rise following ECB rate decision, strong US data

By STAN CHOE attractive to income inves-
NEW YORK (AP) — U.S. tors. Telecom stocks, utilities
stocks mostly ticked higher and real-estate investment
on Thursday after Europe's trusts are among the big-
central bank became the gest dividend payers in the
latest to spell out how it market, and they were the
will close the spigot on the top-three performing sec-
emergency stimulus it's tors in the S&P 500.
flooded into the market in Financial stocks had the
recent years. biggest loss among the 11
More evidence also arrived sectors that make up the
that the U.S. economy is im- index, at 0.9 percent. Low-
proving, including a better- er interest rates can crimp
than-expected report on the profit they earn from
retail sales, and the S&P 500 making loans.
was on pace for its fourth CURRENCIES: The dollar
gain in the last five days. fell to 110.46 Japanese
KEEPING SCORE: The S&P yen from 110.55 yen late
500 was up 8 points, or 0.3 Wednesday. The euro fell
percent, at 2,783, as of to $1.1634 from $1.1773,
noon Eastern time. The Dow and the British pound fell to
Jones industrial average $1.3332 from $1.3358.
was virtually flat at 25,201, COMMODITIES: Benchmark
and the Nasdaq compos- U.S. crude dipped 9 cents
ite rose 62, or 0.8 percent, This April 5, 2018, file photo shows the facade of the New York Stock Exchange. The U.S. stock to $66.55 per barrel. Brent
to 7,758. market opens at 9:30 a.m. EDT on Thursday, June 14. crude, the international
STIMULUS WATCH: The Eu- Associated Press standard, fell 73 cents to
ropean Central Bank said $76.01.
it will begin phasing out its place following the Great economies continued their that fewer workers filed for Gold rose $6.50 to $1,307.80
bond-buying program in Recession. struggles, which have been unemployment claims last per ounce.q
the autumn before end- "It is momentous because compiling since the spring. week than economists ex-
ing it after December. you're moving to something Investors worry that higher pected, an encouraging
That could have worried more normal," said Brent U.S. interest rates will hurt sign for the labor market.
investors, who have grown Schutte, chief investment emerging-market econo- CRUISING: Royal Carib-
accustomed to big stimu- strategist at Northwestern mies, and the MSCI Emerg- bean Cruises jumped to
lus programs from central Mutual Wealth Manage- ing Markets index fell 0.9 the biggest gain in the S&P
banks in support of mar- ment. "At the same time, percent 500 after it agreed to buy a
kets. But the ECB also said you're moving grudgingly STRONG US ECONOMY: two-thirds stake in Silversea
that it will hold off raising toward that. Central banks U.S. retail sales jumped in Cruises for about $1 billion.
interest rates until at least around the world are going May after shoppers spent The acquisition will give
the summer of 2019, which to err toward being more more at home and garden Royal Caribbean more ac-
was more accommodative accommodative, and they stores, gas stations and res- cess to the luxury cruising
than some investors had don't want to cause a mar- taurants. They likely felt em- market.
been expecting. ket shock." boldened by a strong job Royal Caribbean rose 5.2
Europe's central bank is Both the Fed and the ECB market, which has helped percent to $113.58.
following the lead of its have said that their next to lift consumer confi- YIELDS: The yield on the 10-
U.S. counterpart, the Fed- moves will depend on dence. year Treasury fell to 2.95
eral Reserve, which has what the economic data The retail-sales numbers are percent from 2.98 percent
already halted its bond says, and if growth is strong scrutinized for indications late Wednesday. It gave
purchases and raised inter- enough, they'll raise rates of overall consumer spend- up all its gains from the prior
est rates seven times since more quickly. That could ing, which accounts for the day, when the Federal Re-
late 2015. Its latest move end up making markets bulk of the U.S. economy. serve surprised some inves-
was on Wednesday, when around the world more Economists say economic tors by speeding up its time-
it raised its benchmark rate volatile, Schutte said, as activity is likely picking up table for rate increases.
by another quarter of a investors handicap what following a slowdown in YIELD PLAYS: Lower interest
percentage point and indi- each weekly or monthly growth during the first quar- rates can boost demand
cated two more increases economic report means for ter of the year. for dividend-paying stocks,
may come this year. Higher interest rates. A separate report showed which begin to look more
rates can help stave off in- WORLD MARKETS: Euro-
flation, but they can also pean stocks were up more
hinder economic growth. than U.S. indexes, with
Next up on the global cal- France's CAC 40 rising 1.4
endar is the Bank of Ja- percent and Germany's
pan, which meets Friday on DAX up 1.7 percent. The
interest-rate policy. Many FTSE 100 in London gained
economists expect it to an- 0.8 percent. In Asia, Japan's
nounce no changes to its Nikkei 225 index dropped 1
stimulus program. percent, South Korea's Kos-
END OF AN ERA? The ECB's pi sank 1.8 percent and the
move on Thursday is the Hang Seng in Hong Kong
latest step away from the lost 0.9 percent.
massive programs put in Stocks from developing