Stocks advance as mood remains buoyant after data

Sydney - Stocks rose and the dollar was steady after economic data kept investors upbeat on the global economy following strong US hiring figures and a G-20 meeting without market-moving surprises.

European equities jumped and US index futures were higher as shares advanced across much of Asia, though they fell in China even as producer prices showed robust demand in Asia’s largest economy.

Germany’s trade surplus was higher than estimated as May exports beat forecasts. The yen was at a two-month low.

Bank of Japan Governor Haruhiko Kuroda reiterated that policy could be adjusted as needed. Oil pared some gains. Gold and silver fell.

With global stocks close to all-time highs, investors are shrugging off political uncertainty and placing their faith in a continued earnings expansion on broadening global growth. US employers added the most jobs in four months in June, though wage increases were sluggish, according to data on Friday.

"The weaker wage growth buys the Fed more time to wait for inflation signals to pick up before increasing rates which supports the current market view of balance sheet announcement in September followed by a rate hike in December," Stephen Innes, a senior trader at Oanda  in New York, wrote in a note Monday.

"Ultimately, the Goldilocks NFP is a win-win for the US dollar and global equities."

The G-20 summit made little headway on dominant foreign policy issues such as North Korea’s escalation of tensions. Meetings between US President Donald Trump and the leaders of South Korea, Japan and China ended without a clear consensus about how to curb North Korea’s nuclear ambitions.

Here’s what investors will be watching:

Federal Reserve Chair Janet Yellen’s testimony before Congress will be in focus later this week as investors look for guidance of when the US central bank could start reducing its balance sheet. Other Fed speakers include Lael Brainard, while there’s plenty of data releases.

Retail sales, industrial output and business inventories may sway GDP forecasts and CPI could signal if disinflation is intensifying.

These are the main moves in markets:

Currencies

The yen fell 0.3% to 114.23 per dollar as of 4:05pm in Tokyo, its weakest since May 11. The Bloomberg Dollar Spot Index was down less than 0.1%. The Canadian dollar fell 0.1% after its 0.8 %jump on Friday.

The pound rose 0.1% and the euro was little changed. The Mexican peso surged 0.9% to 17.92 versus the greenback, its strongest level this month. The currency also rose 0.9% on Friday. The Korean won led gains in Asia, up 0.4% to 1 149.40 per dollar.

Stocks

The Euro Stoxx 50 index gained 0.4%. S&P 500 Index futures were up 0.2%. The MSCI Asia Pacific Index rose 0.3% after hitting a five-week low on Friday. Japan’s Topix Index added 0.5%. Australia’s S&P/ASX 200 Index gained 0.4%.

Hong Kong’s Hang Seng Index rose 0.7%, while shares on the mainland declined.

Bonds

The yield on 10-year Treasuries was steady at 2.39% after rising 24 basis points in the past two weeks.   

Commodities

WTI crude strengthened 0.2 %to $44.29 a barrel following its 2.8% slide on Friday. Gold dropped 0.5 %to $1 205.97 an ounce and silver fell 1.5%.