U.S. Stocks Rise, Treasuries Gain as Dollar Falls: Markets Wrap

(Bloomberg) -- U.S. stocks edged higher and Treasuries rose amid trading thinned by a holiday-shortened week. The dollar weakened against most peers.

The S&P 500 Index halted a two-day slump as data showed American consumers remain upbeat about the economy. Trading was almost 40 percent below the 30-day average. Stocks in Europe ended slightly higher following a mixed session in Asia. Ten-year Treasury yields headed for a fourth day of declines, while the dollar traded near month lows.

Meanwhile, the euro and pound gained, while bonds in Europe were mixed. West Texas crude retreated after breaching $60 a barrel for the first time since June 2015 on Tuesday. Bitcoin fell below $15,000 after its biggest gain in two weeks took it above $16,000.

The best year for U.S. equities since 2013 is ending with a bit of a whimper after stocks soared in the week before the holidays as Republicans passed a major overhaul of the tax code. Investors will now turn attention to 2018 for clues on whether corporations will plow some of the savings into investments that will bolster earnings at the same time central banks around the world are dialing down stimulus or actively tightening.

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Among the key events remaining for investors this week:

• Italy’s parliament is expected to be dissolved ahead of elections in 2018.
• Egypt decides on interest rates.

And here are the main moves in markets:

Stocks

• S&P 500 Index rose 0.1 percent as of 4 p.m. New York time.
• The Stoxx Europe 600 Index rose 0.1 percent.  
• Emerging market shares jumped 0.5 percent. 

Currencies

• The Bloomberg Dollar Spot Index lost 0.3 percent near the lowest in more than three weeks. 
• The euro gained 0.3 percent to $1.1895, the strongest in almost four weeks on the biggest rise in more than a week. 
• The British pound increased 0.2 percent to $1.3404. 
• The Japanese yen increased less than 0.05 percent to 113.28 per dollar.

Bonds

• The yield on 10-year Treasuries fell seven basis points to 2.41 percent, the most since September. 
• Germany’s 10-year yield lost four basis points to 0.385 percent.

Commodities

• West Texas Intermediate crude lost 0.7 percent to $59.57 a barrel, the first retreat in more than a week. 
• Gold futures increased 0.4 percent to $1,292.30 an ounce. 
• LME copper advanced 1.1 percent to $7,206.00 per metric ton, reaching the highest in about four years on its ninth consecutive advance.

--With assistance from Robert Brand

To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net, Jeremy Herron in New York at jherron8@bloomberg.net.

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Natasha Doff

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