US stocks climb to records before trade pact signing

Bloomberg

US stocks rose to all-time highs as America and China prepared to sign their initial trade accord. The dollar weakened against most major peers and Treasuries gained.
The benchmark S&P 500 set an intraday record for the sixth consecutive trading session, largely ignoring disappointing quarterly results from Goldman Sachs Group Inc and Bank of America Corp.
Healthcare and utilities led gains, outweighing declines in the financial and energy sectors.
US markets received an added boost after White House economic adviser Larry Kudlow promoted more tax cuts.
The Stoxx Europe 600 Index declined, while equities across most of Asia fell ahead of the signing of the first phase of the trade accord.
“This is about trying to balance fair trade, it’s a step in the right direction,” said Matt Burdett, portfolio manager at Thornburg Investment Management.
S&P 500 members in overbought territory relatively low compared with past rallies Russia’s currency weakened as much as 0.6% against the dollar after prime minister Dmitry Medvedev resigned and said President Vladimir Putin will choose a new government, hours after the Kremlin leader called for a series of constitutional changes in his annual address.
European bonds held gains after data showed the German economy expanded at the slowest pace in six years in 2019. Gilts outperformed after UK inflation ebbed to a three-year low, further clearing the path for a Bank of England interest-rate cut.
Meanwhile, oil futures drifted, with West Texas Intermediate trading around $58 a barrel. Gold nudged higher.
It’s earnings season for the biggest American financial institutions, with Morgan Stanley and Bank of New York Mellon Corp still to come.
China GDP, along with key monthly data for December, come on Friday.
A final reading on the euro-zone’s December inflation is also due on Friday.
The S&P 500 Index climbed 0.3% to 3,293.43 in New York, the highest on record. The Dow Jones Industrial Average jumped 0.5% to 29,079.35, the highest on record. The Nasdaq Composite Index increased 0.4% to 9,285.11. The MSCI All-Country World Index advanced 0.1% to 574.13, the highest on record. The Stoxx Europe 600 Index declined 0.1% to 419.15.
The Bloomberg Dollar Spot Index fell 0.1% to 1,191.99, the lowest in a week.
The Japanese yen strengthened 0.1% to 109.89 per dollar.
The euro gained 0.2% to $1.1152, the strongest in a week on the biggest gain in more than a week.
The British pound climbed 0.1% to $1.3028.
The yield on two-year Treasuries declined one basis point to 1.57%, the lowest in a week.
The yield on 10-year Treasuries fell two basis points to 1.79%, the lowest in almost six weeks. Germany’s 10-year yield declined four basis points to -0.21%, the lowest in a week on the biggest drop in more than a week.
Britain’s 10-year yield dipped seven basis points to 0.644%, the lowest in almost 11 weeks on the largest decrease in 16 weeks.
West Texas Intermediate crude fell 0.3% to $57.96 a barrel, the lowest in six weeks.
Gold strengthened 0.2% to $1,550.59 an ounce.