<p>Global equity markets rose and the US dollar slipped on Wednesday, with investors more optimistic a day after the House of Representatives passed the $3.5 trillion budget framework and a top health official expressed confidence in fighting Covid-19.</p>.<p>On Tuesday, the Democratic-controlled House voted to advance the framework, key to President Joe Biden's agenda. Investor confidence in the economic outlook also got a boost when Dr. Anthony Fauci, top US infectious disease expert, said Covid-19 could be under control by early next year.</p>.<p>The United States is still battling another wave of cases due to the highly contagious Delta variant, with the average number of Covid deaths reaching 1,000 a day and over 150,000 new cases, according to a Reuters tally.</p>.<p>Investors remained focused on what US Federal Reserve Chair Jerome Powell might say on Friday about tapering the central bank's bond-buying program when he speaks at the Jackson Hole symposium.</p>.<p>The dollar index, which measures the US currency against a basket of six major currencies, fell 0.081% to 92.834.</p>.<p>"Part of the risk-on move that began on Monday with FDA approval of vaccines has continued," said Michael Ashley Schulman, chief investment officer at Running Point Capital.</p>.<p>"Some investors feel we're reaching the peak of the Covid wave, thus reopening and economic growth will continue."</p>.<p>The MSCI world equity index, which tracks shares in 50 countries, rose 0.23%, while the pan-European STOXX 600 index rose 0.01%. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rallied 2.41%.</p>.<p>US Treasury yields rose to the highest in almost two weeks ahead of Powell's speech. Algorithmic traders also sold Treasuries after the 10-year yields broke above their 200-day moving average.</p>.<p>Benchmark 10-year yields rose 2-1/2 basis points to 1.339%. On Wall Street, all major indexes traded higher, led by financials, industrials, communications and the consumer discretionary sector.</p>.<p>The Dow Jones Industrial Average rose 0.2% to 35,435.36, the S&P 500 gained 0.27% to 4,498.41 and the Nasdaq Composite added 0.2% to 15,049.68.</p>.<p>"Bond yields are rising and the reopening trade is on full blast, banks and other cyclicals are doing well. Tech is taking a back seat," said Thomas Hayes, managing member at Great Hill Capital.</p>.<p>Oil prices rose more than 1% on Wednesday, extending gains for a third session, after US government data showed fuel demand climbed to its highest since the start of the Covid-19 pandemic.</p>.<p>Brent crude rose 1.7% to settle at $72.25 a barrel. US West Texas Intermediate (WTI) crude rose 1.2% to settle at $68.36 a barrel.</p>.<p>Gold slid over 1%, retreating further below the $1,800 level as investors awaited the Jackson Hole symposium.</p>.<p>Spot gold slipped 0.6% to $1,792.06 per ounce. Bullion had rallied 1.4% on Monday to the highest in nearly three weeks, driven by a broad retreat in the dollar.</p>
<p>Global equity markets rose and the US dollar slipped on Wednesday, with investors more optimistic a day after the House of Representatives passed the $3.5 trillion budget framework and a top health official expressed confidence in fighting Covid-19.</p>.<p>On Tuesday, the Democratic-controlled House voted to advance the framework, key to President Joe Biden's agenda. Investor confidence in the economic outlook also got a boost when Dr. Anthony Fauci, top US infectious disease expert, said Covid-19 could be under control by early next year.</p>.<p>The United States is still battling another wave of cases due to the highly contagious Delta variant, with the average number of Covid deaths reaching 1,000 a day and over 150,000 new cases, according to a Reuters tally.</p>.<p>Investors remained focused on what US Federal Reserve Chair Jerome Powell might say on Friday about tapering the central bank's bond-buying program when he speaks at the Jackson Hole symposium.</p>.<p>The dollar index, which measures the US currency against a basket of six major currencies, fell 0.081% to 92.834.</p>.<p>"Part of the risk-on move that began on Monday with FDA approval of vaccines has continued," said Michael Ashley Schulman, chief investment officer at Running Point Capital.</p>.<p>"Some investors feel we're reaching the peak of the Covid wave, thus reopening and economic growth will continue."</p>.<p>The MSCI world equity index, which tracks shares in 50 countries, rose 0.23%, while the pan-European STOXX 600 index rose 0.01%. Overnight in Asia, MSCI's broadest index of Asia-Pacific shares outside Japan rallied 2.41%.</p>.<p>US Treasury yields rose to the highest in almost two weeks ahead of Powell's speech. Algorithmic traders also sold Treasuries after the 10-year yields broke above their 200-day moving average.</p>.<p>Benchmark 10-year yields rose 2-1/2 basis points to 1.339%. On Wall Street, all major indexes traded higher, led by financials, industrials, communications and the consumer discretionary sector.</p>.<p>The Dow Jones Industrial Average rose 0.2% to 35,435.36, the S&P 500 gained 0.27% to 4,498.41 and the Nasdaq Composite added 0.2% to 15,049.68.</p>.<p>"Bond yields are rising and the reopening trade is on full blast, banks and other cyclicals are doing well. Tech is taking a back seat," said Thomas Hayes, managing member at Great Hill Capital.</p>.<p>Oil prices rose more than 1% on Wednesday, extending gains for a third session, after US government data showed fuel demand climbed to its highest since the start of the Covid-19 pandemic.</p>.<p>Brent crude rose 1.7% to settle at $72.25 a barrel. US West Texas Intermediate (WTI) crude rose 1.2% to settle at $68.36 a barrel.</p>.<p>Gold slid over 1%, retreating further below the $1,800 level as investors awaited the Jackson Hole symposium.</p>.<p>Spot gold slipped 0.6% to $1,792.06 per ounce. Bullion had rallied 1.4% on Monday to the highest in nearly three weeks, driven by a broad retreat in the dollar.</p>