Stocks extend strong start to 2018; dollar rises

Dublin - European stocks pushed higher after a positive session in Asia saw shares reaching new records. The dollar strengthened and Treasuries edged lower ahead of Friday’s US unemployment report.

The Stoxx Europe 600 climbed with automakers and tech stocks outperforming. In Asia, benchmark indexes in Tokyo, Seoul and Shanghai rose after US shares surged to fresh records on Thursday.

Most European bonds slipped and the euro was little changed. Commodities fell as oil pulled back from the highest close in more than three years.

After a positive week of global economic data boosted markets, investor focus now turns to US jobs and Friday’s release of non-farm payrolls and unemployment data for December. In Europe, euro-area CPI figures will also be closely watched, with inflation forecast to have slowed in the final month of the year.

“Ongoing strength in the global economy should drive another year of synchronised earnings-per-share growth, with all regions expected to report gains," said strategists at Citigroup Inc. including Robert Buckland.

"An overall increase of 12% in corporate earnings should provide a continued tailwind for global equities over the next 12 months."

Here are some key scheduled events for Friday:

Europe brings German retail sales, EU CPI and French consumer confidence. Canada also reports labour market data on Friday, while the US reports on trade and factory orders. Philadelphia Fed President Patrick Harker and Cleveland Fed President Loretta Mester speak on panels.

And these are the main moves in markets:

Stocks

The Stoxx Europe 600 Index rose 0.2% as of 8:02am London time, the highest in almost two months. The U.K.’s FTSE 100 Index dipped less than 0.05%. Japan’s Nikkei 225 Stock Average climbed 0.9% to the highest in about 26 years.

The MSCI Asia Pacific Index jumped 0.5% to the highest on record.

The MSCI Emerging Market Index climbed 0.3% to the highest in almost seven years. Futures on the S&P 500 Index gained 0.1% to 2 727.00, the highest on record.

Currencies

The Bloomberg Dollar Spot Index rose 0.1%. The euro declined less than 0.05% to $1.2062. The British pound increased less than 0.05% to $1.3552. The Japanese yen decreased 0.4% to 113.15 per dollar, the weakest in more than a week.

Bonds

The yield on 10-year Treasuries gained one basis point to 2.46%. Germany’s 10-year yield climbed one basis point to 0.44%. Britain’s 10-year yield increased less than one basis point to 1.236%.  

Japan’s 10-year yield rose one basis point to 0.063%, the highest in more than two months.

Commodities

West Texas Intermediate crude decreased 0.4% to $61.76 a barrel. Gold declined 0.4% to $1 318.26 an ounce. Copper dipped 0.3% to $3.25 a pound, the lowest in two weeks.