The Albany Gazette - US stocks rise on rate hopes as gold hits record high

In volatile trading, gold touched 2,150, well above its previous high of $2,141.79 as expectations of lower interests rates hurt the dollar.

US stocks had slipped earlier this week as investors locked in profits ahead of Wednesday's congressional testimony of Fed chief Jerome Powell.

While Powell said in prepared remarks that "if the economy evolves broadly as expected, it will likely be appropriate to begin dialing back policy restraint at some point this year," though he did add that bringing down inflation was "not assured."

That was enough to give market participants hope that the central bank could start reducing interest rates in June, though it appeared to rule out a cut at March's policy making committee.

"Equities have dusted themselves down after yesterday’s sudden drop, relieved that Powell’s testimony to US lawmakers has so far not revealed any unpleasant surprises," said Chris Beauchamp, chief market analyst at online trading platform IG.

More indications about the interest rate outlook will come Friday with the release of non-farm payrolls.

Joe Mazzola, an analyst at Charles Schwab, said regardless of the rate outlook, stocks appear well supported.

On "Tuesday, the last half hour featured a comeback, which suggests there's buying interest near the lows and potentially puts things on more solid footing," he said. "The market builds in strong chances of a first rate cut by June or July." Eurozone stocks advanced though less strongly than US markets as investors eyed Thursday's monetary policy decision from the European Central Bank.

The ECB is expected to keep its rates steady but may give clues about its future intentions.

London equities climbed as finance minister Jeremy Hunt announced a fresh tax cut for millions of workers ahead of a general election expected this year.

"The direct result of Jeremy Hunt's widespread tax cuts will be higher disposable income, meaning we could see higher GDP growth in the short term," Mahmoud Alkudsi, senior market strategist at ADSS.

"The equity market could rally if we see tangible evidence of these tax cuts boosting consumer spending and GDP growth," Alkudsi said.

- Bitcoin, oil -

Bitcoin eased somewhat, a day after a record-breaking run, while gold marched to record heights.

Bitcoin stood at $66,882 following Tuesday's record pinnacle of $69,191.

The world's biggest cryptocurrency has soared this week on tight supplies and moves towards making bitcoin investment more accessible.

World oil prices gained ground on rising risk appetite and signs of strong US energy demand, dealers said.

- Key figures around 1640 GMT -

London - FTSE 100: UP 0.4 percent at 7,679.31 points (close)

Paris - CAC 40: UP 0.3 percent at 7,954.74 (close)

Frankfurt - DAX: UP 0.1 percent at 17,716.71 (close)

EURO STOXX 50: UP 0.5 percent at 4,915.49 (close)

New York - Dow: UP 0.6 percent at 38,828.70 points

New York - S&P 500: UP 0.8 percent at 5,119.93 points

New York - Nasdaq Composite: UP 0.8 percent at 16,071.54 points

Tokyo - Nikkei 225: FLAT at 40,090.78 (close)

Hong Kong - Hang Seng Index: UP 1.7 percent at 16,438.09 (close)

Shanghai - Composite: DOWN 0.3 percent at 3,039.93 (close)

Euro/dollar: UP at $1.0914 from $1.0860 on Tuesday

Dollar/yen: DOWN at 149.28 yen from 149.97 yen

Pound/dollar: UP at $1.2759 from $1.2707

Euro/pound: UP at 85.43 pence from 85.44 pence

Brent North Sea Crude: UP 2.0 percent at $83.71 per barrel

West Texas Intermediate: UP 2.7 percent at $80.23 per barrel

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(O.Garcia--TAG)