World stocks headed for a record 12th month of gains as Europe outshone Wall Street yesterday while the dollar edged up and US Treasury yields were steady.
Wall Street had a choppy morning while European stocks hit a five-month high as data showed euro zone growth of 2.5 per cent year-on-year and unemployment at its lowest since early 2009.
Strong earnings from Oreo cookie maker Mondelez boosted the S&P, while Pfizer’s report weighed.
The Dow Jones Industrial Average rose 21.54 points, or 0.09 per cent, to 23,370.28, the S&P 500 gained 2.72 points, or 0.11 per cent, to 2,575.55 and the Nasdaq Composite added 22.76 points, or 0.34 per cent, to 6,721.72.
The dollar index, which measures the greenback against major currencies, was set for its biggest monthly rise since November 2016.
It rebounded slightly from its Monday decline after Federal investigators probing Russian interference in the 2016 US election charged President Donald Trump’s former campaign manager, Paul Manafort, and aide Rick Gates, with money laundering.
The dollar index rose 0.08 per cent, with the euro down 0.13 per cent to $1.1634.
US Treasury prices were steady as investors braced for events that could prompt volatility. Today’s potential catalysts include the Treasury Department’s refunding plans, the conclusion of the Federal Reserve’s two-day policy meeting, and a possible tax bill introduction.
Benchmark 10-year notes last fell 1/32 in price to yield 2.3739 percent, from 2.37 per cent late on Monday.
The 30-year bond last rose 4/32 in price to yield 2.8746 per cent, from 2.88 per cent late on Monday.
The MSCI’s 47-country ‘All World’ index was set to top its 2003 run of 11 straight months of gains. It gained 0.09 per cent yesterday.
MSCI’s index of Asia-Pacific shares outside Japan ended up 0.4 per cent. Strong gains in South Korea helped offset weakness in China and Hong Kong after disappointing industrial data from China.
South Korea’s KOSPI ended up one per cent at a record high after Seoul and Beijing agreed to normalize relations that have been strained by a year-long standoff over the deployment of a US anti-missile system in South Korea.
Oil prices steadied after a week of gains as the prospect of increasing US exports dampened bullish sentiment that has driven Brent to more than two-year highs above $60 per barrel.
US crude fell 0.18 per cent to $54.05 per barrel and Brent was last at $60.46, down 0.21 per cent on the day.
Spot gold dropped 0.5 per cent to $1,270.02 an ounce.