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Published: Wed, July 12, 2017
Culture | By Antonia Gonzales

Dollar Little Changed Ahead of Yellen Testimony

Dollar Little Changed Ahead of Yellen Testimony

Energy stocks also turned in a strong performance, moving higher along with the price of crude oil.

Trading volume remained moderate amid cautious sentiment ahead of congressional testimony planned by U.S. Federal Reserve Chairwoman Janet Yellen later in the week, they said. Eastern time. The Dow Jones industrial average gained 7 points to 21,424.

The Nasdaq composite declined 9 points, or 0.2 percent, to 6,167.

Japan's Nikkei stock index rose 0.5 percent, buoyed by a weaker yen, while Australian shares pared some of its earlier losses.

YELLEN FACTOR: Traders are looking ahead to potential news out of the Federal Reserve when Yellen addresses Congress on Wednesday and Thursday. Investors will look for clues as to how aggressively the Fed will continue to raise rates and start to unwind its big bond-buying stimulus program. The latest US economic reports, particularly for jobs, have been upbeat.

The productivity slowdown, found not just in the USA but also other advanced economies, reflects a combination of factors, perhaps a "productive pause" as firms retool to incorporate new technology as well as a postrecession decline in research-and-development investment that has started to reverse.

International Container Terminal Services was among the biggest gainers on the index, climbing as much as 2.6 percent, after signing an agreement with a dredging company to deepen the Congo River in Africa, a move that would realise cost savings for the terminal operator from 2018.

Considerable strength was also visible among steel stocks, as reflected by the 1.7 percent advance by the NYSE Arca Steel Index.

PepsiCo Inc. (PEP), the soda and snacks giant, reported second-quarter earnings of $1.50 a share on revenue of $15.7 billion. Snap slid $1.36, or 8 percent, to $15.63. The stock gave up $1.28 to $78.65.

Sterling slipped to a near two-week low against the dollar and the euro after a speech by Bank of England Deputy Governor Ben Broadbent left the outlook for interest rates unanswered.

U.S. Treasury prices are hovering near their unchanged marks, with the benchmark 10-year yield flat at 2.38%.

OIL: The price of oil rebounded after dipping earlier in the day.

China stocks were mixed as blue-chips firmed while small-caps extended falls on expectations of more equity supply.

Increased drilling activity in the United States and uncertainty over Libyan and Nigerian production cuts clouded the future supply outlook, leaving USA crude CLc1 down a third of a dollar at $44.13 a barrel and Brent LCOc1 at $46.57. But Germany's DAX climbed 0.1 percent to 12,461.

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