US Stocks Advance, Bonds Mixed as Oil Tops $51: Markets Wrap

New York (May 23)  US stocks pushed toward all-time highs, while the dollar’s retreat abated amid European data that added to signs the global economy remains on firm footing. Brazilian assets stabilized.

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The S&P 500 Index’s fourth straight gain took it within two points of a closing record, with banks pacing gains. U.K. equities rose a third day, the pound pared its decline and gilts were steady after a terrorist attack killed at least 22 people at a concert in Manchester. The dollar stabilized after three days of losses. Brazil’s real was little changed as S&P Global Ratings considers a rating change. South Africa’s rand rallied, and oil topped $51 a barrel.

Confidence is building in the European economy, with data on Tuesday confirming the German economy is firing on all cylinders and France’s is gathering momentum, while a euro-area Purchasing Managers’ Index showed manufacturing in the bloc expanded at the fastest pace in more than six years. That’s bolstering the case for investing in the region as political turmoil in Washington rumbles on, diverting attention from President Trump’s spending and tax plans.

“Europe’s growth numbers aren’t knocking the skin off the ball, but they are less volatile and it’s doing relatively well compared to the U.S., U.K. and Japan,” said Bill Blain, head of capital markets at London-based Mint Partners. “More than a few global investors have lost faith in the U.S. recovery and Trump jump.”

The U.S. president in March asked Director of National Intelligence Daniel Coats and NSA Director Michael Rogers to publicly deny existence of any collusion between his campaign and the Russian government, the Washington Post reported, citing unidentified current and former officials.

SOURCE: BLOOMBERG