Stocks Opened Higher after Yuan Fixing Came in Strong

U.S. stocks opened higher on Thursday after China’s central bank fixed the yuan at a stronger-than-expected rate against the U.S. dollar. The Dow Jones Industrial Average lately rose 98.81 points, or 0.38%, to 26,105.88. The S&P 500 climbed 16.70 points, or 0.58%, to 2,900.68. The Nasdaq Composite gained 50.74 points, or 0.65%, to 7,913.56.

Oil prices put up a modest recovery in Thursday action, tracking mild gains for global stock markets as upbeat news emerged from China. West Texas Intermediate crude for September delivery snapped back $1.07, or 2.1%, at $52.16 a barrel. Brent crude was up 76 cents, or 1.4%, at $56.99 a barrel.

The People’s Bank of China (PBOC) set the yuan’s daily fixing at 7.0039 per U.S. dollar on Thursday. This marked the first time since 2008 that the official reference rate was weaker than 7.

The number of people who applied for unemployment benefits in early August fell back near post 2008 recession lows, signaling the labor market remains quite strong even though the economy has softened. Initial jobless claims, a rough way to measure layoffs, dropped by 8,000 to a seasonally adjusted 209,000 in the seven days Aug. 3.