U.S. stocks, dollar rise as bonds slip on Trump tax

U.S. stocks rose to records on Thursday. / BLOOMBERG NEWS PHOTO
U.S. stocks rose to records on Thursday. / BLOOMBERG NEWS PHOTO

NEW YORK – U.S. stocks rose to records, the dollar erased losses and Treasuries fell after President Donald Trump signaled long-awaited details on promised tax cuts would emerge within weeks. Oil advanced before reports from OPEC and the International Energy Agency.

The S&P 500 Index surged to an all-time high, with airlines jumping after Trump promised industry executives he’d roll back regulations and announce a “phenomenal” tax plan. Equities in Europe rallied after solid results from Societe Generale SA eased concerns about the region’s banks. Treasuries fell, while French and Italian bonds gained amid ebbing political risk. Gold backed off its highest level since November.

Thursday largely brought a reversal in trades that had dominated the early part of the week, as many better-than-expected earnings provided a welcome diversion from risks surrounding elections in at least three core European countries. As the wait for details on Donald Trump’s pro-growth policies goes on, the mixed sentiment has been on display globally, helping boost demand for bonds and precious metals viewed as defensive plays at the same time as riskier assets such as emerging-market stocks.

What’s coming up in the markets:
Attention is turning to Shinzo Abe’s visit Friday with President Donald Trump, as investors parse reports the Japanese prime minister is prepared to offer infrastructure investment, with the U.S. administration still sitting on details of its own policy proposal. The International Energy Agency and OPEC monthly reports are due on Friday and Monday, respectively, providing the first full month of production data since the oil cartel’s supply deal. The U.S. is auctioning 30-year securities at 1 p.m. Thursday, though blizzard-like conditions in the Northeast may impact demand. A U.S. court of appeals is reviewing arguments on whether to reinstate the Trump administration’s temporary ban on immigration, with the outcome likely to be appealed to the Supreme Court.

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Here are the main market moves:

Stocks
The S&P 500 rose 0.5 percent to 2,306.15 at 11:08 a.m. in New York. The index hadn’t moved more than 0.3 percent on a closing basis in the three days this week as it churned near the top of a range its held since mid-December. The Dow Jones Industrial Average added 98.22 points to 20,152.56. The Europe Stoxx 600 climbed for a third day, adding 0.7 percent. Societe Generale rose 2.8 percent.

Bonds
Treasuries fell, with 10-year yields rising three basis points to 2.35 percent, halting a rally that took yields to the lowest in three weeks on a closing basis. Italian bonds gained, with the yield on debt due in a decade shedding six basis points, while the yield on French counterparts fell seven basis points. German benchmark yields was little changed at 0.30 percent. Greece’s two-year bond yield climbed above 10 percent as negotiations to release further IMF funds remained deadlocked.

Currencies
The Bloomberg Dollar Spot Index erased a loss that reached 0.1 percent to trade higher by 0.2 percent. The euro weakened 0.1 percent to $1.0688 and the British pound strengthened 0.2 percent to $1.2571.

Commodities
Oil rose 1.3 percent to $52.99 per barrel. The global oil market’s march to equilibrium won’t be deterred by the increasing volume of crude being poured into U.S. storage tanks, according to Goldman Sachs Group Inc. Copper three-month forwards rose 0.1 percent, adding to a 1.7 percent rally Wednesday after workers at the biggest mine in Chile vowed to strike. Gold advanced 0.2 percent to $1,242.90 an ounce, the highest level since November.

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