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GLOBAL MARKETS-Stocks rise on Apple, Boeing before Fed statement

Published 31/01/2019, 03:20 am
© Reuters.  GLOBAL MARKETS-Stocks rise on Apple, Boeing before Fed statement
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(Adds U.S. open, byline, dateline; previous MILAN)

* Apple, Boeing (NYSE:BA) results provide comfort

* Investors expect dovish Fed statement

* Eyes also on US-China talks in Washington

* Graphic: World FX rates http://tmsnrt.rs/2egbfVh

By Herbert Lash

NEW YORK, Jan 30 (Reuters) - World stocks and the dollar rose on Wednesday ahead of policy guidance from the Federal Reserve, with results from Boeing and Apple and data that showed U.S. private sector jobs increased more than expected in January reassuring investors.

Oil prices rose more than 1 percent, lifted by the potential for supply disruptions following U.S. sanctions on Venezuela's oil industry and gold retreated from an eight-month high as the jobs data boosted the dollar.

Britain's blue-chip stock index jumped more than 1 percent after British lawmakers late Tuesday rejected a proposal in Parliament that aimed to prevent a potentially chaotic "no-deal" Brexit, a vote that initially pushed sterling sharply lower.

The MSCI world equity index .MIWD00000PUS , which tracks share performance in 47 countries, rose 0.32 percent following gains in Asia overnight. The FTSEurofirst 300 index .FTEU3 of leading shares in Europe rose 0.21 percent.

Upbeat results from Boeing and Apple late Tuesday provided investors relief as they awaited a Fed policy statement later in the session and U.S.-China trade talks started in Washington.

Boeing Co BA.N shares jumped after the world's largest planemaker raised its profit and cash flow expectations for 2019 amid a boom in air travel. Boeing also indicated it had overcome supplier delays that snarled 737 production last year.

Apple AAPL.O results provided some reassurance as the iPhone maker reported sharp growth in its services business. shares rose 6.75 percent and Apple gained 4.95 percent.

Investors had been pricing in a U.S. recession and company results show such a slowdown is not on the horizon, Steven Chiavarone, portfolio manager with Federated Investors in New York.

"The market should be higher and it's going to continue to be higher," Chiavarone said. "To put it bluntly, a recession ain't going to happen, and the earnings numbers are confirming that it isn't going to happen."

The Dow Jones Industrial Average .DJI rose 276.23 points, or 1.12 percent, to 24,856.19. The S&P 500 .SPX gained 13.71 points, or 0.52 percent, to 2,653.71 and the Nasdaq Composite .IXIC added 59.28 points, or 0.84 percent, to 7,087.57.

Payrolls processor ADP (NASDAQ:ADP) reported that the U.S. private sector added 213,000 jobs in January, which beat forecasts for gains of 178,000. But the monthly total was lower than the 271,000 jobs added in December. exporter-heavy FTSE 100 .FTSE in London rose 1.45 percent as its components often are boosted by a weaker pound because its multinational companies earn a large portion of their revenue abroad in foreign currency.

Sterling GBP= rose 0.04 percent to $1.3071 after sliding about 0.7 percent against the dollar and the euro following parliamentary votes on Brexit.

"The vote is not fundamentally changing the way the market's talking about Brexit," said Hetal Mehta, Legal & General Investment Management senior European economist.

The dollar index rose 0.06 percent to 95.878 .DXY . Against the yen JPY= , the dollar rose 0.17 percent to 109.57.

The euro EUR= fell 0.07 percent to $1.1422.

Investors expect Fed Chairman Jerome Powell during a scheduled press conference to reiterate the U.S. central bank's willingness to pause the hiking of interest rates when needed.

Benchmark 10-year U.S. Treasury notes US10YT=RR fell 5/32 in price to push yields up 2.7276 percent.

Traders are exiting their positions to reduce market exposure before the Fed releases a policy statement, which lowers bond prices and lifts their yield.

U.S. West Texas Intermediate crude futures CLc1 gained $1.28 to $54.59, while international Brent crude futures LCOc1 rose 93 cents to $62.25 per barrel.

Spot gold XAU= eased 0.04 percent at $1,311.30 per ounce.

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