Dollar Climbs as Gold Falls, European Stocks Halt Gains

Chicago  (Jan 16)   The dollar rose to a four-month high, gaining the most against its Australian counterpart, and gold fell for a third day. European stocks halted a four-day advance and Standard & Poor’s 500 Index futures signaled the gauge will drop from a record.

The Bloomberg Dollar Spot Index rose 0.2 percent to 1,031.36 at 6:48 a.m. in New York and reached its strongest level since Sept. 9. Australia’s dollar sank after employment unexpectedly fell and the Turkish lira dropped to a record. The Stoxx Europe 600 Index slipped 0.1 percent and S&P 500 futures lost 0.2 percent. Spain sold three-year notes at record-low yield of 1.595 percent. Gold dropped 0.4 percent and U.S. natural gas jumped 2.7 percent.

U.S. initial jobless claims and December inflation figures will be released today as investors gauge the outlook for trimming of stimulus. Goldman Sachs Group Inc. and Citigroup Inc. are among S&P 500 members to release earnings today after Bank of America Corp. (BAC) joined JPMorgan Chase & Co. in posting profit that beat analysts’ estimates. Fed Chairman Ben S. Bernanke speaks today.

Three shares declined for every two that advance in the Stoxx 600, with trading volumes 43 percent higher than the average of the past 30 days, according to data compiled by Bloomberg. The gauge closed at its highest level since January 2008 yesterday.