Currencies

• EUR/USD The dollar fell to a 16-month low versus the euro on speculation the Federal Reserve will consider further easing measures at today’s meeting to support the U.S. economy after its bond-buying program expires in June.
  • The dollar weakened to $1.4714 before trading at $1.4692 as of 1:51 p.m. in Tokyo from $1.4644 in New York yesterday.


• USD/JPY The yen weakened against most of its major counterparts after Standard & Poor’s cut Japan’s sovereign-rating outlook to “negative” from “stable.”
  • The outlook on Japan’s AA- local-currency government debt rating, the fourth-highest grade, was lowered from “stable,” S&P said, citing costs for rebuilding from the country’s record earthquake on March 11.
  • The yen was little changed at 81.56 to the dollar.


• GBP/USD Sterling is still up about 5.6% this year as traders expect interest rates there to rise sooner than in the U.S.
  • British pound bought $1.6476 (+0.0849%), compared with $1.6503 late Monday.

Commodities

• Gold advanced, nearing its all-time high, on concern that currencies including the dollar are set to extend declines, spurring demand for precious metals as a store of value.
  • Immediate-delivery gold climbed as much as 0.3 percent to $1,510.13 an ounce, and traded at $1,507.45 at 11:20 a.m. in Singapore.
  • Bullion for June delivery in New York rose as much as 0.5 percent to $1,510.50 an ounce, also nearing its all-time high.

• Oil traded near the lowest in a week in New York as rising U.S. inventories signaled slowing demand in the world’s biggest crude consumer, as people are concerned about high oil prices.
  • Crude for June delivery was at $112.29 a barrel, up 8 cents, in electronic trading on the New York Mercantile Exchange at 1:35 p.m. Singapore time.

Equities

• U.S.stocks increased, sending the Standard & Poor’s 500 Index to its highest level since June 2008, as earnings at companies from 3M Co. to United Parcel Service Inc. and Ford Motor Co. topped analysts’ estimates.
  • 3M, the maker of products including Scotch tape, rose 1.9 percent while Ford, the second-largest U.S. automaker, gained 0.8 percent after reporting a 22 percent jump in profit as vehicle prices increased
  • The S&P 500 advanced 0.9 percent to 1,347.24 at 4 p.m. in New York, the highest level since June 17, 2008.
  • The Dow Jones Industrial Average increased 115.49 points, or 0.9 percent, to 12,595.37, also at an almost three-year high.


• European stocks rose Tuesday, boosted by strong corporate results on both sides of the Atlantic, as well as upbeat U.S. consumer confidence data.
  • The U.K.'s FTSE 100 index added 0.8% to 6069.36.
  • France's CAC-40 index gained 0.6% to 4045.29 and Germany's DAX rose 0.8% to 7356.51.


• Asian stocks rose, with the regional benchmark index heading for its highest close in almost two months, after a report showed U.S. consumer confidence increased, boosting the outlook for Asian exporters.
  • Samsung Electronics Co., Asia’s largest maker of chips, flat screens and mobile phones, gained 3 percent in Seoul.
  • Japan’s Nikkei 225 Stock Average increased 1.3 percent to 9,678.66.
  • Hong Kong’s Hang Seng Index climbed 0.4 percent, while China’s Shanghai Composite Index increased 0.3 percent.

Sources: Bloomberg, FT