Thursday, May 5, 2016

Biggest risk for U.S. stocks found in currency markets

The biggest risk facing U.S. stocks is the Japanese yen’s increase in value against the dollar, according to Gina Martin Adams, a strategist at Wells Fargo Securities LLC. The currency’s strength is an indicator of “the persistence of deflationary fears and the diminishing confidence investors have in central-bank capability to re-inflate the struggling global economy,” she wrote in a report Monday. The U.S. currency dropped 11 percent against the yen for the year through Wednesday, while the S&P 500 Index rose 0.4 percent.

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