US stocks, euro rise on economy optimism

Bloomberg

US stocks edged to all-time highs and the euro strengthened after data from Germany and France signaled the region’s economic recovery remains on track. Brazilian assets stabilized.
The S&P 500 Index’s fourth straight gain took it within two points of a record, while technology companies boosted Stoxx Europe 600 Index after Nokia Oyj settled a litigation with Apple Inc. UK equities rose a third day, the pound pared its decline and gilts were steady after a terrorist attack killed at least 22 people at a concert in Manchester.
Brazil’s real was little changed as S&P Global Ratings considers a rating change. South Africa’s rand rallied amid. Oil halted a four-day rally that took the price of crude above $51 a barrel.
Confidence is building in the European economy, with data on Tuesday confirming the German economy is firing on all cylinders and France’s is gathering momentum, while a euro-area Purchasing Managers’ Index showed manufacturing in the bloc expanded at the fastest pace in more than six years. That’s bolstering the case for investing in the region as political turmoil in Washington rumbles on, diverting attention from President Trump’s spending and tax plans.
“Europe’s growth numbers aren’t knocking the skin off the ball, but they are less volatile and it’s doing relatively well compared to the US, UK and Japan,” said Bill Blain, head of capital markets at London-based Mint Partners. “More than a few global investors have lost faith in the US recovery and Trump jump.”
The US president in March asked Director of National Intelligence Daniel Coats and NSA Director Michael Rogers to publicly deny existence of any collusion between his campaign and the Russian government, the Washington Post reported, citing unidentified current and former officials.
Trump’s tour will head to Group of Seven and NATO meetings in Europe. Sales of US new homes in April probably held near a nine-year high, Commerce Department figures are projected to show on Tuesday. Minutes from the last Federal Reserve policy meeting will be released on Wednesday,
offering more clues to the path of interest rates. OPEC will meet in Vienna on Thursday, with major
oil producers edging closer to extending an agreement to curb
output. South Korea, Canada, South Africa and Thailand set interest rates this week.
The S&P 500 climbed 0.2 percent to 2,398.41 at 9:31 a.m. in New York. The gauge has advanced 1.7 percent in four days and now sits 0.2 percent below its record from May 15. The Stoxx Europe 600 Index gained 0.3 percent.