Stocks adding to records as Treasury yields climb

Bloomberg

US stocks added to records and the dollar held gains while Treasuries fell for a second day as the Trump administration plotted strategy for pushing a tax overhaul.
The S&P 500 Index edged towards the 2,500 level, lifted by financial stocks as technology shares were little changed before Apple Inc.’s much-anticipated iPhone unveiling later on Tuesday.
The Stoxx Europe 600 Index climbed for a fifth day. The pound jumped as UK inflation accelerated more than forecast, and oil fluctuated as producers were said to discuss extending output cuts.
Tuesday’s rally showed demand for riskier assets continues after North Korea refrained from provocations following the UN Security Council’s move to impose sanctions and as the threat from Hurricane Irma receded. President Donald Trump was said to be planning an aggressive travel schedule to sell the idea of a tax overhaul that he promises will bolster growth.
“There is no question that the stock market has an expectation that we are going to get tax reform done,” Treasury Secretary Steven Mnuchin said at a New York conference. “The stock market has expectations that we are going to create significant growth. Which is what this president and this administration is focussed on.”
Meanwhile, Apple’s new iPhone is boosting stocks of some European semiconductor makers on speculation they may get a share of the component-manufacturing pie.
The US company is expected to unveil three new iPhone models and an Apple Watch upgrade, with analysts watching for details of release dates, pricing and components in the new devices.
Retail sales and inflation data are due this week. The UK reports wage data on Wednesday.
The Bank of England will almost certainly leave policy unchanged on Thursday.
Also due this week are data on China’s August industrial production, retail sales and fixed-asset investment. Australia releases jobs data on Thursday. And the Frankfurt Motor Show is still underway.
The Stoxx Europe 600 Index rose 0.5 percent, hitting the highest in five weeks. The MSCI All-Country World Index gained 0.2 percent, hitting the highest on record. The MSCI Emerging Market Index climbed 0.2 percent. The UK’s FTSE 100 Index fell 0.2 percent.
Germany’s 10-year yield rose five basis points to 0.38 percent, the highest in more than a week. Britain’s 10-year yield climbed seven basis points to 1.11 percent, the highest in about a month
Japan’s Topix index advanced 0.9 percent at the close in Tokyo. Australia’s S&P/ASX 200 Index added 0.6 percent.