GLOBALES: Oil jumps, stocks and dollar steady with low volatility - EntornoInteligente / Reuters / NEW YORK Oil prices rebounded on Wednesday after the largest one-week drop in U.S. crude inventories this year, helping fuel a modest rise on Wall Street, while European stocks closed near their highest in nearly two years.

European full-year earnings forecasts, set to be their best since 2010, and centrist Emmanuel Macron’s victory in France’s presidential election over the weekend have steadied European bourses so far this week.

The pan-European FTSEurofirst 300 index rose 0.19 percent and MSCI’s gauge of stocks across the globe gained 0.11 percent.

Oil prices rose after Iraq and Algeria joined Saudi Arabia in supporting an extension to OPEC supply cuts and U.S. inventories fell more than expected.

U.S. crude rose 3.99 percent to $47.71 per barrel and Brent was last at $50.55, up 3.73 percent on the day.

In the United States, disappointing results from Dow component Walt Disney dragged the index of 30 securities, and President Donald Trump’s firing of FBI Director James Comey gave equities some pause in early trading, but stocks inched higher.

Trump said he fired Comey, who had been leading an investigation into the Trump 2016 campaign’s possible collusion with Russia, over his handling of the email scandal.

“The market has been unusually stable for a long period; we?ve had a long stretch of not many big moves up or down,” said Giri Cherukuri, head trader at OakBrook Investments LLC in Lisle, Illinois.

“The market has been able to absorb a lot of geopolitical news, but one of these days we?ll have a big geopolitical event and we?ll have a big reaction to that.”

The Dow Jones Industrial Average fell 32.2 points, or 0.15 percent, to 20,943.58, the S&P 500 gained 1.79 points, or 0.07 percent, to 2,398.71 and the Nasdaq Composite added 7.95 points, or 0.13 percent, to 6,128.54.

Traders said Comey’s firing could lead to serious complications for the administration, but without a “smoking gun” that showed Comey’s firing was motivated by something other than the director’s handling of a probe into then-Democratic presidential nominee Hillary Clinton, there was likely to be limited market reaction.

“What?s the biggest concern is how much of a distraction does it have from the White House?s and the Congress? goals,” said Jeffrey Carbone, senior partner, Cornerstone Financial Partners, in Huntersville, North Carolina.

“How much does this distract from tax reform, repeal of (the Affordable Care Act), repatriation of assets, infrastructure spending?”

Measures of market volatility are at rock-bottom. The U.S. VIX index was just a hair above its lowest level since 2006 touched on Tuesday.

The dollar was flat against a basket of major currencies after slipping on the view that political uncertainty could derail Trump’s tax reform plans.

The yen, often sought in times of market uncertainty, reversed its earlier gains against the greenback. The dollar was 0.25 percent higher against the Japanese currency, touching an eight-week high. The dollar also reversed earlier losses against the safe-haven Swiss franc, which had risen to a nearly one-month high.

A weak 10-year note auction sunk demand for U.S. government debt as the prices on benchmark 10-year notes erased earlier gains to trade flat. Yields had touched a five-week high on Tuesday.

Gold fell 0.13 percent to $1,219 an ounce.

Greek 10-year yields on Wednesday fell to their lowest since its debt was restructured in 2012. Greek stocks rose for a twelfth straight session, the longest streak since 1991, as Athens looked set to clinch vital bailout loans.

(Reporting by Dion Rabouin; Additional reporting by Nigel Stephenson in London; Editing by Nick Zieminski)

GLOBALES: Oil jumps, stocks and dollar steady with low volatility

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