New York, US (BBN)-A global equities rally gathered speed as investors embraced riskier assets after the Dow Jones Industrial Average topped 20,000 for the first time.
Gold retreated with bonds, reports Bloomberg.
European stocks climbed, pushing a benchmark all-country index to within 1.5 per cent of its record high.
The dollar rebounded, strengthening against most major peers.
Copper touched the highest price since November after reports of lower production.
Global government bonds extended declines as France’s 10-year yield breached 1 per cent for the first time in more than a year.
Record highs in the world’s biggest equity indexes is fueling optimism that renewed growth in the US will filter through into other major global economies, creating demand for commodities exports and driving investors out of fixed-income assets and gold.
The rally may meet resistance from economic indicators that have reached the upper reaches of historical ranges, according to Deutsche Bank AG strategists.
“The surge in growth momentum that has been a key driver of the sharp moves in global equity and rates markets is likely to fade over the coming months,” according to a note published by strategists led by London-based Sebastian Raedler Wednesday.
HERE ARE THE MAIN MOVES IN MARKETS:
STOCKS
The Stoxx Europe 600 Index climbed 0.5 per cent at 10:49 am London time, while Germany’s DAX rose to a 20-month high.
S&P 500 futures were up 0.1 per cent after the underlying index jumped 0.8 per cent to 20,068.51 on Wednesday.
Drug and healthcare companies lead the 19 industry groups of the Stoxx 600, with 40 of 42 members higher.
Swiss drugmaker Actelion Ltd. jumped as much as 22 per cent percent after agreeing to a $30 billion takeover by Johnson & Johnson.
BONDS
The yield on the 10-year Treasury added three basis point to 2.54 per cent after jumping five basis points on Wednesday.
Periphery nations led a retreat in European bonds, with yields on Italian and Portuguese government debt advancing nine basis points.
Russian bonds fell for a third day after the finance ministry said it will start currency purchases next month.
CURRENCIES
The Bloomberg Dollar Spot Index was up 0.3 per cent, though still headed for a fifth straight weekly decline, the longest stretch since May 2015.
The pound weakened 0.2 per cent to $1.261 after earlier climbing as much as 0.3 per cent after a data release showed the UK economy grew faster than economists forecast in the fourth quarter.
The euro slipped 0.3 percent to $1.0721.
COMMODITIES
Gold fell 0.6 per cent to $1,193.24 an ounce after dropping 1.4 per cent over the previous two sessions as optimism around corporate earnings fueled risk appetite.
West Texas Intermediate crude rose 0.3 per cent to $52.91, paring Wednesday’s declines as investors weighed output cuts from OPEC and other producing nations against expanding US crude stockpiles.
Copper for delivery in three months was little changed on the London Metal Exchange after climbing to the highest since November 28 at $6,045.50 a ton after miner Anglo American said output fell.
Iron ore continued its rally for a third day, with futures climbing 1.1 per cent.
BBN/SK/AD