US stocks rise, dollar gains, Treasury yields nudge higher

Bloomberg

US stocks gained while the dollar strengthened and Treasury yields nudged higher as President Donald Trump called on North Korea to “make a deal” on its missile and nuclear programme. European stocks fluctuated near a two-year peak and Asian markets hit records.
The S&P 500 Index opened higher along with the Dow Jones Industrial Average and Nasdaq 100 Stock Index. The Stoxx Europe 600 Index slipped, erasing an earlier advance, amid disappointing reports from BMW AG and Associated British Foods Plc. Asia-Pacific equity benchmarks from Tokyo to Sydney reached fresh milestones, with the Nikkei 225 Stock Average rising to a level last seen more than 25 years ago. The euro slipped to a four-month low after German industrial production dropped more than expected in September.
“The current news backdrop argues against any correction in the near future,” commodity researchers at Commerzbank AG wrote in a note on Tuesday.
Investors’ focus on geopolitics sharpened further as Trump continued his tour of Asia. Speaking next to South Korean President Moon Jae-in in Seoul, Trump said he saw some progress on North Korea and called on the rogue state to “come to the table.” He added that the US and South Korea will act together to confront North Korea’s actions, and the US stands ready to use its full range of military capabilities “if need be.”
Elsewhere, industrial metals pared some of yesterday’s gains and gold declined.
US consumer sentiment probably cooled in early November from a more than 13-year high; the University of Michigan’s report is out on Friday. OPEC releases its World Oil Outlook. Argentina, Mexico, New Zealand, Malaysia and Thailand also have monetary-policy decisions this week. The European Commission’s chief Brexit negotiator Michel Barnier and UK Brexit Secretary David Davis resume talks. Earnings season continues with announcements from Walt Disney Co, Adidas AG, and Siemens AG. European financial companies set to report include Banca Monte dei Paschi di Siena SpA, Credit Agricole SA, Allianz SE and Zurich Insurance Group AG.
The S&P 500 was up 0.2 percent to 2,595.67 as of 9:41 am in New York. The Stoxx Europe 600 fell 0.1 percent. The UK’s FTSE 100 Index decreased 0.2 percent. Germany’s DAX Index was little change. Japan’s Nikkei 225 climbed 1.7 percent to the highest since January 1992. The MSCI Asia Pacific Index jumped 0.9 percent to the highest in about 10 years. The MSCI Emerging Market Index jumped 0.6 percent to the highest in more than six years. The Bloomberg Dollar Spot Index gained 0.3 percent. The euro decreased 0.3 percent to $1.1579, the weakest since July. The British pound declined 0.3 percent to $1.3133. The Japanese yen fell 0.4 percent to 114.14 per dollar.
The yield on 10-year Treasuries gained less than one basis point to 2.3181 percent. Germany’s 10-year yield increased less than one basis point to 0.339 percent. Britain’s 10-year yield decreased two basis points to 1.236 percent.