Equities were soft despite slim gains in the bond market and a steady dollar.

Some other positive factors for bonds were a steady dollar and lower commodity prices.

Technical factors and a steady dollar helped overcome an unexpectedly bad report on the nation's merchandise trade deficit.

Both reports fanned investors' fears about inflation, but the concern was partly offset by a steady dollar in the currency markets.

The stock market rallied, aided by stronger bond prices and a steadier dollar.

A steady dollar also helped to support bonds as the United States and Japan agreed to resume trade talks.

Except for weakness against the yen, a steady dollar plus narrow bond gains and declining oil prices gave the market a brief lift.

Currency markets were much calmer as trading began in Asia, with the dollar roughly steady against the yen.

A steady dollar in recent days helped the market reverse last week's retreat.

But it is not clear whether a steady interest-rate policy would lead to a steady dollar.