Stocks gain as investor focus turns to Fed remarks; oil drops

Bloomberg

US stocks rose to a three-week high, as renewed gains in Treasuries that pushed yields further below 2.9 percent alleviated angst that higher rates would accelerate tightening. The dollar strengthened.
The S&P 500 Index climbed for a third day, joining gains in European and Asian equities. Volume was low as investors await the first public comments from Federal Reserve Chairman Jerome Powell on Tuesday.
The 10-year yield slipped below 2.85 percent, a two-week low. Gold climbed and oil dipped.
“There was a lot of talk from various Federal Reserve related folks last week and that provided to a certain extent a sense of calm that we won’t see rates spike in the second half of this year,” Matt Schreiber, president and chief investment strategist at WBI Investments, said. “The market freaked out when they thought Jerome Powell might raise rates faster than expected—his first comments are eagerly anticipated here.”
Powell may help set a new direction for investors at a time when some of the biggest names in markets are at odds over the implications of this month’s surge in US bond yields. Morgan Stanley put out a bullish call on Treasuries, countering warnings on the securities from Goldman Sachs Group Inc. and Warren Buffett.
Overseas, the Stoxx 600 Index reached its highest level in three weeks. The pound and euro fluctuated, and Russia’s ruble appreciated the most among emerging market currencies after S&P Global Ratings boosted its credit score to investment grade.
Meanwhile, Bank of Japan Governor Haruhiko Kuroda said the central bank has no plan to overhaul its current form of easing, adding that he saw no need to do another comprehensive assessment of the effectiveness of the bank’s policies. Oil futures edged lower after Saudi Oil Minister Khalid Al-Falih said OPEC and its allies may ease output curbs in 2019 in a way that won’t disturb the market.
Bitcoin erased its decline and broke above $10,000.
Powell testifies before a House panel on Tuesday. He’ll discuss the Fed’s Semi-Annual Monetary Policy Report and the state of the economy. Powell returns on March 1 before a Senate committee. UK PM Theresa May delivers a speech on Britain’s relationship with the European Union after Brexit. A barrage of data is expected out of Japan including retail sales and industrial production on Wednesday. Bank of Korea has policy decision and briefing on Tuesday.
The S&P 500 was up 0.4 to its highest in almost a month in New York. The Stoxx Europe 600 climbed 0.3 percent to the highest in more than three weeks. Germany’s DAX Index was little changed. The MSCI All-Country World Index rose 0.4 percent.
The Bloomberg Dollar Spot Index climbed 0.1 percent. The euro was little changed at $1.2293. The Japanese yen gained less than 0.1 percent to 106.85 per dollar. The British pound declined 0.1 percent to $1.3953.
The yield on 10-year Treasuries dropped three basis points to 2.83 percent. Germany’s 10-year yield fell one basis point to 0.64 percent, reaching the lowest in a month on its fifth straight decline.