US stocks open higher on oil recovery

New York, March 2 (IANS) US stocks opened higher on Tuesday, the first trading day of March, as oil continued to recover and investors expected a further easing of monetary policies due to weak economic data.

Oil prices rose on Tuesday on the prospects of higher demand, with the West Texas Intermediate for April delivery up over 1 percent above $34 a barrel in the early trade trading, Xinhua reported.

Global stocks rallied after downbeat manufacturing data out of the euro zone bolstered the cases of central banks to extend stimulus plans.

The data will likely give the US Federal Reserve pause as it deliberates on if and when it will further increase interest rates.

“At this moment, I judge that the balance of risks to my growth and inflation outlooks may be starting to tilt slightly to the downside, William Dudley, New York Fed president, said at a conference in China.

Chinese stocks rose and regained the 2,700-point mark on Tuesday, after the country announced a cut in its reserve requirement ration (RRR) and weaker-than-expected manufacturing data.

Chinese yuan weakens

The central parity rate of the Chinese currency renminbi, or the yuan, weakened 105 basis points to 6.5490 against the US dollar on Wednesday, according to the China Foreign Exchange Trading System.

In China’s spot foreign exchange market, the yuan is allowed to rise or fall by two percent from the central parity rate each trading day, Xinhua reported.

The central parity rate of the yuan against the US dollar is based on a weighted average of prices offered by market makers before the opening of the interbank market each business day.

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