U.S. Stocks on Longest Run Since '13, Dollar Gains: Markets Wrap

U.S. equities rose an eighth day, the dollar strengthened and Treasuries slipped as the latest batch of data added to optimism in the American economy ahead of Friday’s jobs report. European markets got a boost after Catalans were said to stall their push for independence.

The S&P 500 Index pushed its rally to the longest since July 2013 after jobless claims and factory orders beat expectations. The 10-year note yield rose after Fed presidents John Williamsand Patrick Harker made comments supporting rate hikes, while the dollar neared the highest since July after data showed the U.S. trade gap narrowed to an 11-month low. West Texas crude traded above $50 a barrel.

Spanish equities led a broader gauge of European stocks higher after reports said Catalan separatists were trying to find a way to put off a definitive declaration of independence. Bond yields in Spain rose, lifting other debt in Europe. The pound declined as political noise swirls around U.K. Prime Minister Theresa May’s leadership.

“In the U.K and in the Eurozone, markets are underestimating political risk going forward,” said Adam Cole, currency strategist at RBC Capital Markets. Euro and pound traders “have to price in a larger political risk and that supports the strength of a trend of a stronger dollar.”

Minutes from the European Central Bank released on Thursday showed members discussed how to adjust monetary stimulus next year as policy makers raised concern about the rapid appreciation of the euro. In the U.S., fewer people filed for unemployment benefits last week as the impact of hurricanes Harvey and Irma faded.

Terminal subscribers can read more in our Markets Live blog.

Coming Up:

  • The U.S. September nonfarm payrolls report, likely to be affected by the impact of hurricanes on southern states, comes out on Friday. Read here why a better look at the data will be coming on Oct. 20.

Here are the main moves in markets:

  • The S&P 500 Index gained 0.2 percent at 10:32 a.m. New York Time.

  • The Stoxx Europe 600 Index sank 0.1 percent.

  • Spain’s IBEX Index gained 2.9 percent.

  • The MSCI Emerging Market Index gained 0.2 percent, reaching the highest in two weeks on its fifth consecutive advance.

  • The Bloomberg Dollar Spot Index increased 0.3 percent to the highest in 11 weeks.

  • The euro declined 0.3 percent to $1.1722, the weakest in seven weeks.

  • The British pound fell 0.9 percent to $1.3133, the weakest in four weeks.

  • The yield on 10-year Treasuries rose one basis point to 2.33 percent.

  • Germany’s 10-year yield declined two basis points to 0.43 percent, the lowest in more than a week.

  • Spain’s 10-year yield fell six basis points to 1.724 percent.

  • West Texas Intermediate crude gained 0.4 percent to $50.18 a barrel, the biggest rise in a week.

  • Gold increased 0.2 percent to $1,277.25 an ounce.

  • Copper surged 1.8 percent to $6,640.50 per metric ton, the highest in more than three weeks on the biggest jump in more than five weeks.

--Randall Jensen

— With assistance by Cecile Gutscher, and Eddie Van Der Walt

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