NEW YORK (Reuters) – World equity markets broadly rose on Wednesday, lifted by investor optimism that British lawmakers will rule out a no-deal Brexit and fresh U.S. data that highlighted a strong economy with low inflation, an outlook that weakened the dollar. <\/p>\n
A trader works on the floor at the New York Stock Exchange (NYSE) in New York, U.S., March 13, 2019. REUTERS\/Brendan McDermid<\/span><\/p>\n<\/figcaption><\/div>\n<\/div>\n U.S. producer prices barely edged higher in February to mark the smallest annual increase since June 2017, in the latest sign of benign inflation that supports the Federal Reserve\u2019s wait-and-see approach to future interest rate hikes. <\/p>\n The Commerce Department later reported new orders for key U.S.-made capital goods rose by the most in six months in January and shipments increased. <\/p>\n U.S. stocks advanced broadly, with Boeing gaining for the first time since Sunday\u2019s crash of a 737 MAX 8 jet in Ethiopia, while European shares rose on expectations British lawmakers will vote to reject a disorderly no-deal exit for Britain from the European Union. <\/p>\n Economic data still suggests an \u2018OK\u2019 economy but analysts\u2019 estimates of corporate profits are slowing, which is worrisome, said Michael Geraghty, equity strategist at Cornerstone Capital Group in New York. <\/p>\n \u201cEarnings estimate revisions continue to come downward but that does not seem for the moment to be fazing equity investors,\u201d he said. It\u2019s the old mantra: don\u2019t fight the Fed.\u201d <\/p>\n A Fed on hold for hiking rates suggests concern about economic growth, which can be seen in a narrowing yield gap in 10-year and two-year U.S. Treasury debt, Geraghty said. <\/p>\n \u201cAn inverted yield curve has historically been an indicator of recession,\u201d he said. <\/p>\n MSCI\u2019s gauge of stocks across the globe gained 0.49 percent while the FTSEurofirst 300 index of leading European shares rose 0.51 percent. <\/p>\n On Wall Street, the Dow Jones Industrial Average rose 155.29 points, or 0.61 percent, to 25,709.95. The S&P 500 gained 21.84 points, or 0.78 percent, to 2,813.36 and the Nasdaq Composite added 64.21 points, or 0.85 percent, to 7,655.24. <\/p>\n The British pound rose ahead of another vote in parliament on a proposal that would rule out a \u201cno deal\u201d exit from the European Union. Sterling rose 0.83 percent to $1.3181 while the dollar softened against the yen and euro. <\/p>\n The dollar index, tracking it against six major peers, fell 0.15 percent and the euro rose 0.15 percent to $1.1303. <\/p>\n The Japanese yen strengthened 0.03 percent versus the greenback at 111.35 per dollar. <\/p>\n U.S. Treasury yields rose after falling the previous session as risk appetite improved and equity markets steadied. <\/p>\n Benchmark 10-year U.S. Treasury notes fell 3\/32 in price to yield 2.6141 percent. <\/p>\n \u201cAfter yesterday\u2019s CPI (consumer price index) data, yields fell. So some of these are just rebound after that,\u201d said Stan Shipley, fixed income strategist, at Evercore ISI in New York. <\/p>\n Oil prices rose more than 1 percent, supported by an unexpected drop in U.S. crude inventory along with a forecast of slower-than-expected supply from the world\u2019s top crude producer. <\/p>\n U.S. crude stocks fell last week as refineries hiked output, the Energy Information Administration said. <\/p>\n U.S. crude rose $1.08 to $57.95 per barrel and Brent added 51 cents to $67.18. <\/p>\n Reporting by Herbert Lash; Editing by Bernadette Baum<\/p>\n<\/div>\n<\/div>\n