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Global Markets: Stocks extend record run; bond yields up, euro at 3-yr high

Reuters  |  NEW YORK 

By Caroline Valetkevitch

(Reuters) - A key stock was on track for an eighth week of gains on Friday and U.S. stocks rose amid a rally in and strong U.S December retail sales data, while a robust U.S. report boosted Treasury yields.

Underlying U.S. consumer prices posted their biggest gain in 11 months in December, bolstering expectations about a pickup in domestic and about Federal Reserve interest rate hikes this year.

"One of the things that's been driving the market is an expectation that may start to pick up or at least normalize this year and encourage the Fed to continue along its (monetary policy) tightening path, and today's data surprised to the upside," said Michael Pond, head of inflation-linked research at in

The two-year Treasury yield, which is sensitive to traders' views on interest rates, jumped over 2 percent to its highest since September 2008.

The slumped to a more than three-year low against the The common currency extended its gains on hopes that European Central policymakers are preparing to reduce their vast monetary stimulus program.

The was up 0.9 percent to $1.2139, on pace for its biggest single-day percentage gain against the greenback in about two months.

The euro's rise weighed on the dollar index, which measures the greenback against six rival currencies. The was down 0.59 percent at 91.313, after slipping to a four-month low of 91.243.

The pared losses slightly after the release of the U.S. consumer price data.

On Wall Street, rose following quarterly results from and While tax-related costs are expected to weigh on banks' earnings, they are expected to benefit in the long run from a lower tax burden.

The rose 202.12 points, or 0.79 percent, to 25,776.85, the gained 13.61 points, or 0.49 percent, to 2,781.17 and the added 40.44 points, or 0.56 percent, to 7,252.21.

The pan-European rose 0.17 percent and MSCI's gauge of stocks across the globe gained 0.56 percent.

U.S. stock indexes hit all-time highs, along with the

The MSCI has already surged 3.8 percent since the start of the year.

In commodities, retreated from 2014 highs hit the previous day, but they remained on track for a fourth week of gains.

U.S. crude fell 0.22 percent to $63.66 per barrel and Brent was last at $69.15, down 0.16 percent on the day.

Investors warned that while rising were supportive, they could weigh negatively especially on crude-consuming regions.

For the Live blog on European and UK stock markets, open a window on Eikon by pressing F9 and type in 'Live Markets' in the

(Additional reporting by Marc Jones in Helen Reid in London and Kate Duguid in New York; Editing by Bernadette Baum)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 12 2018. 22:38 IST