Crude gains lift US stocks, bond rally falters

Bloomberg

US stocks advanced as oil’s rise above $53 a barrel lifted energy producers before key reports from OPEC and the International Energy Agency. The dollar continued to churn in place, while Treasuries halted the longest rally in eight months.
The S&P 500 Index edged within points of an all-time high, while equities in Europe rallied after solid results from Societe Generale SA eased concerns about the region’s banks. Treasuries fell with German bunds, while French and Italian bonds gained amid ebbing political risk. Gold backed off its highest level since November. Crude rose as Goldman Sachs Group Inc. said OPEC will succeed in eliminating a supply surplus.
Thursday largely brought a reversal in trades that had dominated the early part of the week, as many better-than-expected earnings provided a welcome diversion from risks surrounding elections in at least three core European countries. As the wait for details on Donald Trump’s pro-growth policies goes on, the mixed sentiment has been on display globally, helping boost demand for bonds and precious metals viewed as defensive plays at the same time as riskier assets such as emerging-market stocks.

What’s coming up in the markets:
Attention is turning to Shinzo Abe’s visit Friday with President Donald Trump, as investors parse reports the Japanese prime minister is prepared to offer infrastructure investment, with the U.S. administration still sitting on details of its own policy proposal. The International Energy Agency and OPEC monthly reports are due on Friday and Monday, respectively, providing the first full month of production data since the oil cartel’s supply deal. The U.S. is auctioning 30-year securities at 1 p.m. Thursday, though blizzard-like conditions in the Northeast may impact demand. A U.S. court of appeals is reviewing arguments on whether to reinstate the Trump administration’s temporary ban on immigration, with the outcome likely to be appealed to the Supreme Court.