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Dubai - US stocks approached fresh records and the dollar rose with Treasury yields as a spike in private hiring data bolstered optimism in the economy. The pound declined amid political risk before the impending UK election, and crude steadied.
The S&P 500 edged higher as banks rebounded from a selloff and tech shares continued to stretch all-time highs. Eighteen of 19 industry groups on the Stoxx Europe 600 Index advanced, helped by media companies.
The dollar strengthened as companies added more workers to US payrolls in May than forecast, according to data from the ADP Research Institute. West Texas oil trimmed much of its gain, but stayed higher in the wake of data pointing to a bigger-than-expected drop in US stockpiles.
Investors appear to be in a confident mood as this week’s slew of economic and global data continues. With US policy makers meeting in two weeks, all eyes will be on the jobs report Friday for more insight on the state of the world’s largest economy.
Federal Reserve Bank of San Francisco President John Williams said in Seoul that if the economy is strong enough, the central bank can raise interest rates four times in 2017.
Meanwhile, in Asia data showed capital spending in Japan topped estimates during the first quarter, while corporate profits jumped 27%. In China, the weakness in the Caixin manufacturing gauge - with a smaller sample size - contrasts with the government’s reading Wednesday showing the manufacturing PMI was steady last month.
Here are some of the key upcoming events:
The US jobs report on Friday may bolster the case for a rate hike, with a gain of 180 000 positions expected.
Here are the main moves in markets:
Stocks
The S&P 500 rose 0.1% to 2 413.15 at 15:34. The index closed 0.2% below a record. The Nasdaq Composite and Nasdaq 100 indices each added 0.3% to fresh records. The Stoxx Europe 600 Index advanced 0.3%, after finishing May with a 0.8% increase. Real-estate and media shares led gains on Thursday. MSCI’s emerging-market index rose 0.2% after rising for a fifth straight month in May.
Currencies
The Bloomberg Dollar Spot Index rose 0.2%, following a 1.5% decline in May for the biggest monthly drop since January. The pound fell 0.1% to $1.2877. The euro weakened 0.2% to $1.1219. The yen slipped 0.6% to 111.396 per dollar, after gaining in the month of May.
Commodities
West Texas Intermediate crude oil edged higher from a two-week low to trade at $48.42 a barrel before the government data. Crude fell 2.7% in the previous session. Gold dropped 0.4% to $1 263.98 an ounce, giving back some of Wednesday’s 0.5% gain.
Bonds
The yield on 10-year Treasuries rose three basis points to 2.23%. The yield curve flattened after the ADP report, with the spread between five-year and 30-year notes breaching 110 basis points for the first time since May 11. Italian benchmark yields increased five basis points.
Asia
The MSCI Asia Pacific Index rose 0.2%, after capping its fifth straight monthly gain for the longest winning streak since 2013. Japan’s Topix rallied 1.1% as capital spending topped estimates.
The Shanghai Composite Index retreated after a private gauge of China’s manufacturing fell below 50. The onshore yuan climbed 0.1%, advancing for a fourth day amid speculation policy makers are trying to discourage bets against the currency.
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