Dollar rises on jobs data as global stocks rally

Dubai - The dollar strengthened as US companies added more jobs than forecast in January, and an upbeat mood in Europe’s corporate sphere underpinned a rebound in global stocks.

The greenback, which spent much on Wednesday little changed ahead of the Federal Reserve’s first meeting of the year, climbed 0.2% after data showed companies last month added the most workers to US payrolls since June.

European stocks climbed with S&P 500 Index futures after companies including Apple, Siemens and Volvo posted results that exceeded expectations, along with optimistic forecasts for the year ahead.

The pound rose before a parliamentary vote on formally triggering an exit from the European Union. Oil breached $53 a barrel.

Officials aren’t expected to increase rates when the Federal Open Market Committee convenes, but investors will trawl the statement accompanying the decision for any change in forward guidance which earlier indicated there could be three hikes this year.

Policy makers must weigh a raft of data hinting the US and global economies are on a firmer footing against the turmoil caused by Trump’s first weeks in the White House, and the shadow thrown over his expected pro-growth policies.

"The markets are caught in this dilemma about whether to pay more attention to fundamentals or to politics," said Andrew Milligan, head of global strategy at Standard Life Investments in Edinburgh.

"We’re getting a fairly steady stream of profits exceeding expectations. The dollar is the canary in the coal mine - it’s the asset to watch because it’s so closely correlated to risk-on, risk-off sentiment across all other assets."

What’s coming up in the markets:

The Fed is expected to leave lending rates where they are, though its statement on Wednesday in Washington will be parsed for any reading on Trump’s impact on the world’s largest economy.

The UK parliament on Wednesday holds its first vote on the Article 50 bill. Bank of England Governor Mark Carney faces a delicate balancing act when policy makers meet to decide interest rates on Thursday.

Facebook Inc. and Amazon.com are among the major US companies due to report results this week. Of the S&P 500 names to report so far, 73% have topped profit estimates.