Stocks gain as oil rises past $70 a barrel; dollar hits strongest level

Bloomberg

US stocks extended gains following a rally in Europe and the dollar resumed its winning ways to reach the strongest level this year. Oil rose past $70 a barrel as traders braced for renewed US sanctions on Iran.
The S&P 500 advanced for a second day, led by energy and tech stocks. The Stoxx Europe 600 Index climbed, though trading volumes in the region were lighter than usual thanks to a holiday in the UK. In Asia, shares rose in Australia and Shanghai. The yen fell as Japanese traders returned from holidays, while the euro also weakened. Ten-year Treasury yields fluctuated near 2.95 percent.
Mergers and acquisitions helped boost investor sentiment on Monday, with Blackstone Group LP agreeing to buy Gramercy Property Trust in a cash deal valued at $7.6 billion, Nestle SA spending $7.15 billion for the right to market Starbucks Corp. products and Elliott Management Corp offering to buy Athenahealth Inc. for $6.5 billion. Geopolitics remain in focus this week with President Donald Trump saying he’ll decide by May 12 whether the US stays in or pulls out of the Iran nuclear deal. Earnings season continues, and on the economic front traders will watch out for an expected acceleration in US consumer prices.
Elsewhere, investors are closely following emerging-market assets after many extended their losses last week. Developing-nation stocks edged higher and currencies were weaker.
Both Turkey’s lira and its equities retreated. Argentina’s peso seemed to stabilise following a tumultuous week of unscheduled central bank interest-rate increases.
Nafta talks resume in Washington on Monday. US Commerce Secretary Wilbur Ross said talks could drag on for months. Chinese trade data is due on Tuesday. It’s also the Australian annual budget on Tuesday. Malaysia holds a general election on Wednesday. Japanese Prime Minister Shinzo Abe hosts South Korean President Moon Jae-in and Chinese Premier Li Keqiang Wednesday. There’s a Bank of England policy decision on Thursday.
US inflation data for April is due the same day. Trump’s Iran-deal deadline is this week. Some of the company earnings due include Walt Disney, Petrobras, Marriott, Toyota, Ambev and Deutsche Telekom.
The S&P 500 Index rose 0.4 percent in New York. The Stoxx Europe 600 Index climbed 0.5 percent to a three-month high. The MSCI Asia Pacific Index rose 0.1 percent. Germany’s DAX Index climbed 0.8 percent to the highest in more than three months. The MSCI Emerging Market Index rose 0.2 percent, the first advance in a week.
The Bloomberg Dollar Spot Index rose 0.2 percent to the highest in more than four months. The euro decreased 0.4 percent to $1.1913, the weakest since December. The British pound gained 0.2 percent to $1.3557, the first advance in almost two weeks. The Japanese yen dipped 0.2 percent to 109.28 per dollar.
The yield on 10-year Treasuries was little changed at 2.95 percent. Germany’s 10-year yield declined two basis points to 0.52 percent, the lowest in almost three weeks.
West Texas Intermediate crude rose 0.9 percent to $70.37 a barrel. Gold dipped 0.1 percent to $1,313.29 an ounce.