U.S. stocks and commodities edged higher on Wednesday as the euro slid against the dollar ahead of the ECB meeting. Investors weighed the scope of additional stimulus from the central bank. Crude rallied and Treasuries declined.
Energy companies led the advancers, helping push the S&P 500 Index off of a low. The benchmark equity in Europe pushed ahead for the first time in three sessions. The euro recovered slightly from earlier selling.
The S&P 500 rose 0.6% after falling the most in two weeks on Tuesday as energy shares retreated.
The Stoxx Europe 600 Index gained 0.6%. Raw material and media companies posted the highest gains.
The MSCI Asia Pacific Index, meanwhile, declined 0.4% as energy stocks and materials declined.
The European Central Bank is projected to boost its stimulus efforts during its meeting on Thursday. The extent of the increase is still being debated. Oil climbed to $38 a barrel.
Economists predict that the ECB will implement a new package of easing measures to help boost price growth. This speculation is helping support markets after China’s exports dampened a three-week rally that restored nearly $5 trillion in equities value worldwide.
The International Monetary Fund announced on Tuesday that the commodity slump and volatility in equities markets is increasing global economic risks.
Crude oil jumped 3.9% to trade at $37.93 a barrel after climbing to $38.19. Supplies dropped by 4.53 barrels last week, more than expected. Analysts projected a decline of 1.5 million.
The four-week average demand for oil jumped to its highest level in six months.
Nickel rose 3.5% after falling on Tuesday. Copper saw a 1.4% gain. Gold fell 0.6%, extending its retreat after reaching a 12-month high.
Shares in emerging markets jumped 0.3%, erasing Tuesday’s losses. Russia’s ruble climbed 2.7% against the dollar, while the lira jumped 0.9%, marking gains for two straight sessions.
Japanese and U.S. bonds were down. Record-low yields in Japan dampened demand for government debt. Japanese bonds rallied on Tuesday after its 10-year yield dropped to -0.1%.
Ten-year Treasuries jumped to 1.87%. Japanese note yields rose nine basis points to -0.025%. Yields on Germany’s 10-year bunds ended a two-day advance, rising 0.24%.