US stocks rally on renewed trade hopes; pound climbs

Bloomberg

US stocks joined a global rally as the outlook for trade took a positive turn and confidence grew that the British prime minister will defeat a challenge to her leadership.
Chipmakers and energy
producers led the S&P 500 Index higher following gains in Europe and Asia after the chief financial officer of Huawei Technologies Co. was granted bail and President Donald Trump said he’d consider intervening in the case if it helps get a trade deal with China. Sentiment was also bolstered by a report that Chinese officials are drafting a plan that would give foreign companies more access to local markets.
The British pound surged the most in a month on speculation Theresa May will survive the vote of confidence.
Treasuries and the dollar both remained lower on the day as a key measure of US inflation picked up as expected in November. While developments on trade tends and Brexit have been at the forefront for investors, they’re also keeping watch on the risk of a shutdown of parts of the US government.
Elsewhere, oil climbed after a US industry report signalled a bigger-than-expected draw in nationwide crude inventories. India’s bonds rallied after an ally of PM Narendra Modi was named as the new central bank chief.
The European Central Bank is set to end asset purchases at its final policy meeting of 2018 on Thursday.
China industrial production, retail sales data for November is due on Friday.
The S&P 500 Index advanced 1.2 percent in New York. The Stoxx Europe 600 Index jumped 1.5 percent to the highest in a week. The Nikkei-225 Stock Average added 2.2 percent. .
The Bloomberg Dollar Spot Index decreased 0.3 percent. The euro increased 0.3 percent to $1.1346. The British pound jumped 1 percent to $1.2607. The Japanese yen was little changed at 113.4 per dollar.
The yield on 10-year Treasuries climbed two basis points to 2.9 percent. Germany’s 10-year yield climbed three basis points to 0.26 percent. Britain’s 10-year yield jumped six basis points to 1.24 percent.
West Texas Intermediate crude climbed 1.4 percent to $52.37 a barrel.
Gold advanced 0.1 percent to $1,245.01 an ounce.