Stocks, Treasuries gain as Senate vote to end shutdown

Bloomberg

Stocks and Treasuries gained, while the dollar erased losses as the US Senate prepared to vote on ending a partial government shutdown.
The S&P 500 Index rose following a third straight weekly advance as investors awaited about 80 earnings reports this week, including from Netflix Inc. and Proctor & Gamble Co.
The dollar edged higher along with 10-year Treasuries as key Senate Democrats predicted the passage of bill to end the impasse on funding the government.
“Due to the limited economic impact, markets should be largely unaffected,” by the government shutdown, said Poul Kristensen, portfolio manager at New York Life Investment Management. “If there is a little pullback, we believe it will be a buying opportunity. The last time the government shut down in 2013, markets moved higher.”
Nonetheless equity investors appear undecided over the latest US government drama, weighing it against the optimism over economic growth and profit increases that pushed many stock indexes to all-time highs.
Meanwhile, the next catalyst for bonds may come from commentary by policy makers after European and Japanese central bank decisions this week. Their signals that unprecedented stimulus will soon be wound back has sparked a surge in yields this month.
Elsewhere, West Texas oil gained after OPEC and Russia said output cuts will continue until the end of the year. The MSCI Emerging Market Index of stocks rose a seventh day, poised for the longest winning streak in six months as the likes of Goldman Sachs Group and Blackstone Group joined the chorus of developing-nation bulls.
Barring any last minute changes in Washington, President Donald Trump will join world leaders and senior executives in Davos, Switzerland, for the annual World Economic Forum.
The S&P 500 Index rose 0.4 percent as of 12:12 pm New York time. The Dow Jones Industrial Average rose 0.2 percent. The Stoxx Europe 600 Index gained 0.2 percent to the highest in more than two years. The MSCI World Index of developed countries rose 0.3 percent to the highest on record. The MSCI Emerging Market Index advanced 0.4 percent, its seventh consecutive advance. The UK’s FTSE 100 Index fell 0.3 percent.
The euro increased 0.1 percent to $1.2242. The Bloomberg Dollar Spot Index was steady. The British pound gained 0.6 percent to $1.3943, the strongest in 19 months. The Japanese yen was little changed at 110.83 per dollar.