* Oil prices leap nearly 4% after tanker attacks in Gulf of
Oman
* Shares claw higher, dollar steady while yield curve
steepens
* Asian stock markets: https://tmsnrt.rs/2zpUAr4
(BbUpdates after U.S. market open, adds commentary, changes
byline, previous dateline LONDON)
By Sinéad Carew
NEW YORK, June 13 (Reuters) - Oil futures jumped on Thursday
after suspected attacks on two tankers off the coast of Iran,
while U.S. Treasury yields edged lower as economic data seemed
to strengthen the case for the Federal Reserve to cut interest
rates this year.
Wall Street's major stock indexes climbed after falling for
two days as investors regained their appetite for risk assets.
The number of Americans filing applications for unemployment
benefits unexpectedly rose last week, potentially adding to
concerns about the U.S. labor market after May job growth
slowed.
And other data showed import prices fell by the most in five
months in May in the latest indication of muted inflation
pressures, potentially strengthening the case for the Federal
Reserve to cut interest rates this year. But Randy Frederick, vice president of trading and
derivatives for Charles Schwab in Austin, Texas was not
convinced the data changed anything.
"I don't see a whole lot of real positive catalysts other
than a small bounce because we got a couple of weak days," said
Frederick. "Generally, when you get a bounce that doesn't seem
to have a catalyst, often it doesn't last. I'm finding it hard
to imagine what optimism might be out there right now."
The Dow Jones Industrial Average .DJI rose 52.6 points, or
0.2%, to 26,057.43, the S&P 500 .SPX gained 7.71 points, or
0.27%, to 2,887.55 and the Nasdaq Composite .IXIC added 34.99
points, or 0.45%, to 7,827.71.
The pan-European STOXX 600 index .STOXX rose 0.14% and
MSCI's gauge of stocks across the globe .MIWD00000PUS shed
0.01%.
After falling hard on Wednesday, oil futures rebounded
sharply after news of a suspected attack on two tankers in the
Gulf of Oman near Iran and the Strait of Hormuz, through which a
fifth of global oil consumption passes. "Whenever you have an incident in the Arabian Gulf, a little
bit of nervousness always starts to kick in about that
particular artery getting clogged up," CMC Markets senior
analyst Michael Hewson said.
U.S. crude CLcv1 rose 2.97% to $52.66 per barrel,
recouping much of the previous day's 4% drop. Brent LCOcv1 was
up 2.7% at $61.57.
YIELD CURVE STEEPENS
In U.S. Treasuries, the yield curve steepened after the
import prices spurred bets for a Fed rate cut this year, days
ahead the U.S. central bank's scheduled meeting. Benchmark 10-year notes US10YT=RR last rose 8/32 in price
to yield 2.1014%, from 2.127% late on Wednesday.
In currencies, the U.S. dollar was little changed against
the euro as investors were reluctant to take large positions
before next week's Federal Reserve meeting and the G20 summit in
Japan later this month. “I think in order to see the dollar weaken further, you need
to see some follow through from the Fed on rate easing,” said
Mazen Issa, senior FX strategist at TD Securities in New York.
The dollar index .DXY , tracking it against six major
currencies, rose 0.04%, with the euro EUR= down 0.12% to
$1.1274.
The Japanese yen strengthened 0.08% versus the greenback to
108.44 per dollar, while sterling GBP= was last trading at
$1.2683, down 0.02% on the day.
The pound was subdued after British lawmakers defeated an
attempt led by the opposition Labour Party to try to block a
no-deal Brexit by seizing control of the parliamentary agenda
from the government. Gold prices edged up to the week's high on Thursday, on
expectations for a U.S. rate cut after soft inflation data,
although the uptick in equities capped gains. Spot gold XAU= added 0.5% to $1,339.56 an ounce.
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Fed Funds rate projections https://tmsnrt.rs/2XgZ7Jj
Position of evacuated tankers in Gulf of Oman https://tmsnrt.rs/2X6nIQF
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