Stocks rise on hope Middle East tensions can be contained
Oil dips after as risk premium eases
U.S. retail sales breezes past expectations
Graphic: World FX rates http://tmsnrt.rs/2egbfVh
(Updates to 10:57 EDT)
Wall Street wavered, U.S. Treasury yields rose and the Japanese yen hit a 34-year trough on Monday as solid data and a calmer Middle East after Iran's weekend attacks on Israel helped revive investor risk appetite.
The three major U.S. stock indexes pared initial gains and the Nasdaq turned slightly negative after Friday's steep sell-off, while the yen fell to its lowest level since 1990, reviving intervention fears.
U.S. retail sales data for March blew past analyst expectations, the latest evidence in the case for the resilience of the American consumer.
"The retail sales number was a good bit better than expected and the consumer’s showing signs of being strong," said Thomas Martin, Senior Portfolio Manager at GLOBALT in Atlanta.
"You’re seeing a back-up in yields, which is probably being driven by the continuing strength of the consumer and reverberations from the inflation report last week," Martin added.
On the geopolitical front, Iran's missile and drone attack against Israel over the weekend caused minimal damage, and calls for restraint regarding Israel's response appeared to be calming helping tensions in the region.
"Iran’s attack was tit for that, but it didn’t work and now it’s over," Thomas said. "That puts markets on a better footing; you see that in oil, and the volatility index is off."
"There’s willingness to take risks that’s being reflected in the stocks."
The Dow Jones Industrial Average .DJI rose 106.19 points, or 0.28%, to 38,089.43, the S&P 500 .SPX gained 9.88 points, or 0.19%, to 5,133.29 and the Nasdaq Composite .IXIC dropped 3.13 points, or 0.02%, to 16,171.97.
European shares gained ground as tensions in the Middle East abated, boosted by surging shares in Temenos TEMN.S after a committee formed by the software company called damaging claims by Hindenburg Research, who shorted the stock, "inaccurate and misleading."
The pan-European STOXX 600 index .STOXX rose 0.20% and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.07%.
Emerging market stocks lost 1.03%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 1.02% lower, while Japan's Nikkei .N225 lost 0.74%.
Yields for 10-year U.S. Treasuries rose, hitting their highest level since November in the wake of the Retail Sales report.
Benchmark 10-year notes US10YT=RR last fell 33/32 in price to yield 4.6343%, from 4.499% late on Friday.
The 30-year bond US30YT=RR last fell 63/32 in price to yield 4.7323%, from 4.603% late on Friday.
The dollar edged higher against a basket of world currencies, building on last week's five-month high as the yen dipped to a 34-year trough.
The yen move helped revive anticipation of the possibility of intervention on the part of Japanese authorities.
The dollar index .DXY rose 0.16%, with the euro EUR= down 0.15% to $1.0626.
The Japanese yen weakened 0.67% versus the greenback at 154.34 per dollar, while Sterling GBP= was last trading at $1.2452, up 0.02% on the day.
Crude oil prices dipped as the risk premium eased in the wake of the Iranian attack.
U.S. crude CLcv1 fell 1.03% to $84.78 per barrel and Brent LCOcv1 was last at $89.79, down 0.73% on the day.
Gold edged higher, building on its all-time high reached in the previous session.
Spot gold XAU= added 0.3% to $2,349.38 an ounce.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ The prices of war https://reut.rs/4aQTxzh^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> ((https://www.reuters.com/markets/For Reuters Live Markets blog on European and UK stock markets, please click on: ))
