US stocks rose to records as retailer results topped estimates, while the dollar resumed its advance amid fresh signs global growth has started to accelerate. Treasuries erased losses.
The S&P 500 Index rose after results from Home Depot Inc. and Wal-Mart Stores Inc. bolstered confidence the American consumer can stoke growth. European equities advanced after readings on euro-area manufacturing topped estimates and mining companies rallied. Dollar bulls were handed the baton after a Federal Reserve policy maker reinforced the chances for a US interest-rate increase as soon as next month. Gold slumped and oil breached $54 a barrel.
The prospect of tightening monetary policy helped stoke the dollar, which has been trading below this yearâ€™s highs as investors clamor for detail on spending plans under US President Donald Trump. Equity markets, meanwhile, have gone from strength to strength on growth optimism and amid the greenbackâ€™s weakness.
â€œFor all the Trump variables in the air the dollar has been played out primarily through rate expectations since the election,â€ said Adam Cole, the head of global foreign-exchange strategy in London at Royal Bank of Canada.
Here are some events that investors are watching out for:
The Fed releases minutes this week from its most recent meeting, possibly giving investors a look into how members see Trumpâ€™s policies. Data should show the US housing market perking up at the start of the year. The PMI is expected to rise slightly. Itâ€™s International Petroleum Week in London and top OPEC, government and company officials are attending.
Here are the main market moves:
The S&P 500 climbed 0.4 percent at 11:45 a.m in New York, its ninth gain in the past 10 sessions. The measure pared gains as bonds reversed losses in late-morning trading. Home Depot added 1.2 percent and Wal-Mart was up 2.7 percent. The Stoxx Europe 600 index advanced 0.5 percent. Banking stocks fell after HSBC missed earnings estimates and said it will boost cost-cutting measures and extend a stock buyback.
Asian stock rose, with South Koreaâ€™s benchmark climbing 0.9 percent to the highest level since July 2015. Hong Kongâ€™s Hang Seng slipped 0.8 percent, the most in more than a month.
The Bloomberg Dollar Spot Index gained 0.4 percent. The greenback rose after Market News International cited Philadelphia Fed President Patrick Harker, who votes on policy this year, saying a rate move next month is not â€œoff the table at this point.â€ That followed hawkish congressional testimony last week from Fed Chair Janet Yellen. The euro weakened 0.7 percent. Sterling was 0.4 percent weaker following Bank of England Governor Mark Carneyâ€™s appearance at a Treasury Select Committee hearing on Februaryâ€™s Inflation Report.
The yield on 10-year Treasuries was little changed at 2.42 percent after earlier adding four basis points to 2.46 percent. German benchmark yields rose three basis points after better-than-expected PMI euro- area manufacturing data. The yield on the equivalent French bonds also climbed three basis points.
US natural gas extended its decline into a third day due to forecasts for warmer-than-normal weather across the east coast. Futures fell 3.1 percent to $2.745 per million British thermal units. Oil advanced as Citigroup Inc. raised its short-term price outlook, citing good OPEC compliance with its output-cut agreement and growing demand in Asia. West Texas Intermediate gained 1.9 percent to $54.39 a barrel and Brent added 1.5 percent.