Trump stepped up his criticism of Fed policy in a tweet Tuesday, calling borrowing costs "way too high
NEW YORK: US stocks extended their winning streak, joining a global rally in riskier assets amid optimism on the outlook for trade talks and speculation U.S. monetary policy will be supportive. Treasuries were steady.
The S&P 500 Index headed to its sixth consecutive advance as durable-goods makers led gains. The index rose 0.7% as of 9:44 a.m. New York time.
Mining and automobile shares pulled the Stoxx Europe 600 Index higher.
In Asia, China equities outperformed after news that local governments may spend more on infrastructure helped offset President Donald Trump’s threat to raise tariffs again if President Xi Jinping doesn’t meet with him at the Group of 20 summit at month’s end. The dollar edged higher.
Sentiment has turned optimistic after a horrific month of May for global equity markets, with investors looking to the G-20 summit in Japan as the next possible site for a breakthrough in the trade dispute between the world’s two largest economies.
As traders have added bets on lower U.S. interest rates, Trump stepped up his criticism of Fed policy in a tweet Tuesday, calling borrowing costs "way too high” amid "VERY LOW INFLATION.”
"The market will be a little volatile going into the G-20 just as you hear whispers around how trade negotiations are likely to unfold,” Caleb Silsby, Whittier Trust chief portfolio manager, told Bloomberg TV. It’s likely the market has priced in a "fairly decent resolution” on trade so any disruption would lead to increased volatility again, Silsby said.
Elsewhere, Mexico’s peso stabilized after posting its best day in almost a year following the country’s accord with the U.S. late Friday. The onshore yuan recovered after closing at its weakest level of the year.
Emerging-market stocks and currencies both gained. Oil climbed toward $54 a barrel in New York. - Bloomberg
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