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Cape Town - European shares gained a second day after after data underscored the resilience of the American and Chinese economies, and billionaire investor Warren Buffett said he still prefers stocks to bonds. The dollar was steady as Treasury yields rose a second day.
The Stoxx Europe 600 Index followed gains in equity benchmarks from Tokyo to Sydney after US equities advanced for a fourth day. The dollar was steady after rallying from the lowest in two years Wednesday as second-quarter US growth figures were revised up.
Most European bonds declined, while gasoline advanced as Harvey continued to pound the energy-rich Gulf of Mexico coast, home to more than half of the US’s refining capacity.
Buffett said the rally in markets over the last several years has made it harder to find bargains, but that stocks remain attractive. Adding to the mood of optimism, data on Thursday showed China’s official factory gauge further strengthened in August while reports Wednesday showed US second-quarter growth reached the fastest pace in two years and hiring was robust.
Data on US personal consumption data today and jobs tomorrow will be parsed for clues on the timing of the Federal Reserve’s next rate move.
President Donald Trump signalled he’s running out of patience with Kim Jong Un’s regime after the latest provocation in which Pyongyang sent a missile over Japan earlier this week. Trump dismissed the idea of negotiating, while his defense chief said the US hasn’t given up on diplomatic options.
Meanwhile, Japanese Foreign Minister Taro Kano and US Secretary of State Rex Tillerson agreed in a phone call to send a clear message to prevent North Korea from taking further actions and to prepare additional sanctions.
Storm Harvey returned to land and is poised to dump more rain over Texas and Louisiana. Refineries have been battered, with more than an estimated 4 million barrels a day - or about 23% of US refinery capacity - getting hit.
Among other key events this week:
• Among economic releases in Europe on Thursday: Germany July retail sales and August unemployment, as well as eurozone July CPI and unemployment.
• The US releases on Thursday a key personal consumption expenditure report that the Federal Reserve looks at, ahead of jobs data out on Friday.
And here are the main moves in markets:
Stocks
• The Stoxx Europe 600 Index gained 0.5% as of 11:08.
• The UK’s FTSE 100 Index added 0.6%, the most in a week.
• Germany’s DAX Index advanced 0.5%.
• Futures on the S&P 500 Index climbed 0.4%.
Currencies
• The Bloomberg Dollar Spot Index increased 0.1%.
• The euro climbed 0.1% to $1.1897.
• The British pound slipped 0.3%.
• The Japanese yen fell 0.2% to ¥110.48/$, the weakest in two weeks.
Bonds
• The yield on 10-year Treasuries advanced one basis point to 2.15%.
• Germany’s 10-year yield increased one basis point to 0.37%.
• Britain’s 10-year yield climbed less than one basis point to 1.04%.
Commodities
• Gold dipped 0.1% to $1 307.69 an ounce.
• West Texas Intermediate crude increased 0.3% to $46.10 a barrel.
• Gasoline for September advanced for an eighth day, up more than 4.4% to $1.9673 a gallon.
• Earlier the front-month contract touched the highest since July 2015.
Asia
• The Topix index rose 0.6% at the close in Tokyo, paring its first monthly drop since March.
• Australia’s S&P/ASX 500 Index added 0.8%.
• The Kospi retreated 0.4%.
• Benchmark indices dropped 0.6% in Hong Kong and fell in Shanghai, led by declines in banking stocks that had recently been surging.
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