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Bloomberg
US stocks rallied to all-time highs after a trade truce with China, though gains eased after measures of manufacturing activity showed growth slowing in the world’s largest economy. Gold, the yen and Treasuries all retreated.
The S&P 500 surpassed its intraday record, with chipmakers surging after President Donald Trump agreed to ease a ban on American companies supplying Chinese tech giant Huawei. Semiconductor shares in Asia and Europe also rallied. Industrial shares underperformed, as a manufacturing gauge showed orders stalled last month, even as activity fell less than forecast.
Losses in haven assets turned muted overnight after a series of weak factory reports from major economies reaffirmed speculation that global central banks will remain on track with easier monetary policy. The 10-year Treasury yield climbed as much as four basis points before cutting that in half. Gold fell 1 percent, trimming a plunge that earlier topped 2 percent.
Crude surged, sending West Texas Intermediate towards
$60 a barrel, after major producers agreed to extend output cuts. Stocks in Shanghai and Tokyo led Asian gains, while markets in Hong Kong were closed for a holiday as a new wave of unrest hit the city. Traders seem cautiously optimistic in the wake of the G-20 gathering, though the move to delay further tariffs and resume talks doesn’t offer much clarity on the critical issues. Investors have also been assessing global growth as a series of major purchasing manager readings showed declines. US factory data are also due today.
In Europe, the euro trimmed a decline and European bonds were mixed as data showed manufacturers in the region remained firmly stuck in a slump last month, and as leaders failed again to agree who will fill key European Union roles, including the presidency of the central bank. Italian bonds surged,
reflecting optimism that the European Commission won’t penalise the nation this summer over its budget deficit.
Boris Johnson and Jeremy Hunt continue their campaign to be the next UK prime minister. OPEC+, a wider coalition that includes Russia, is meeting in Vienna. The US celebrates the Independence Day holiday. The US jobs report is due on Friday and is projected to show nonfarm payrolls rose by 160,000 in June, rebounding from 75,000 the month prior.
The S&P 500 Index climbed 0.8 percent in New York to the highest on record. The Nasdaq 100 Index rose 1.4 percent and the Dow jumped 0.9 percent. The Stoxx Europe 600 Index gained 1 percent to the highest in almost two months on the biggest rise in almost two weeks. The MSCI Asia Pacific Index climbed 0.8 percent to the highest in almost two months.
The Bloomberg Dollar Spot Index rose 0.2 percent to the highest in more than a week on the largest climb in two weeks. The yield on 10-year Treasuries gained two basis points to 2.02 percent. Germany’s 10-year yield climbed less than one basis point to -0.33 percent.