Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S. (Photographer: Michael Nagle/Bloomberg)

U.S. Stocks End Week Higher Boosted by Trade Talk: Markets Wrap

(Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.

Equities surged to a 10-week high as the U.S. consumer outlook brightened and positive developments in China trade talks overshadowed lingering concerns about global growth. Treasury yields climbed, while the dollar retreated after an early-morning rally.

The S&P 500 Index closed at session highs Friday, with all sectors gaining, on reports that the U.S. and China had reached consensus in principle on the main topics in their trade negotiations. It was the third straight weekly gain for the benchmark. U.S. consumer sentiment rebounded from a two-year low, further fueling the rally and bolstering the case that yesterday’s dire retail sales figures were out of sync with reality.

Trade continues to dominate markets as the two sides race to reach a deal that would avert a tariff increase on Chinese goods by March 1. At the White House Friday, President Donald Trump said that the U.S. is “a lot closer” to a deal with China and that he might “extend the date.”

“The market got more constructive on China-U.S. trade negotiations,” said Michael Antonelli, equity sales trader at Robert W. Baird. “It’s starting to put the slowing of last year into the rear-view mirror, it’s starting to look forward now. There’s a whole group of people now who are just jumping back in on the market because the sell-off hasn’t happened, but in the end that’s kind of when a retest has its biggest chance of happening.”

U.S. Stocks End Week Higher Boosted by Trade Talk: Markets Wrap

On Wall Street, the reaction was muted to Trump’s announcement that he will declare a national emergency to get more federal money for a border wall.

In Europe, banks and miners helped drive gains in the Stoxx 600 Index. Asian shares retreated, with Chinese stocks falling as weak factory prices highlighted the tough environment for industrial profitability, adding to other disappointing data from major economies. Elsewhere, West Texas crude hit a 12-week high on supply cuts and metals advanced. Emerging-market shares fell, while EM currencies edged higher.

Exchanges in the U.S. will be closed Monday for Presidents’ Day.

These are the main moves in markets:

Stocks

  • The S&P 500 Index increased 1.1 percent as of 4 p.m. New York time, the highest in over 10 weeks.
  • The Dow Jones Industrial Average rose 1.7 percent.
  • The Stoxx Europe 600 Index gained 1.4 percent to the highest in more than four months.
  • The U.K.’s FTSE 100 Index rose 0.6 percent.
  • The MSCI Emerging Market Index fell 0.7 percent to a two-week low.

Currencies

  • The Bloomberg Dollar Spot Index declined 0.2 percent.
  • The euro rose less than 0.05 percent to $1.1299.
  • The British pound gained 0.7 percent to $1.2892, the biggest jump in three weeks.
  • The Japanese yen rose 0.1 percent to 110.41 per dollar.
  • The MSCI Emerging Markets Currency Index climbed 0.3 percent.

Bonds

  • The yield on 10-year Treasuries climbed one basis point to 2.66 percent.
  • Germany’s 10-year yield fell less than one basis point to 0.10 percent.
  • Britain’s 10-year yield increased one basis point to 1.16 percent.

Commodities

  • The Bloomberg Commodity Index gained 1.2 percent to the highest in more than a week.
  • West Texas Intermediate crude rose 2.4 percent to $55.72 a barrel, the biggest gain in two weeks.
  • Gold climbed 0.7 percent to $1,321.29 an ounce.

©2019 Bloomberg L.P.