(Bloomberg) -- U.S. equities climbed to all-time highs after President Donald Trump said he’s been talking to Chinese President Xi Jinping and that they continue to work for a trade deal. Treasuries and the dollar rose.
Trade “is on everybody’s mind,” said Jeanette Garretty, managing director and principal of Robertson Stephens Wealth Management in San Francisco. “The equity markets on any given day are happy to look at the talks and be happy about things but it sets up some volatility.”
The S&P 500, Dow Jones Industrial Average and Nasdaq Composite climbed to fresh records before paring gains. China said earlier that Sino-American trade negotiators “reached consensus” on certain issues in a phone call and agreed to stay in contact on the remaining points. The Stoxx Europe 600 Index edged higher for a third day, while Asian shares were mixed.
The dollar headed for a sixth straight gain, the longest winning streak in almost three months as talks of a trade deal eased fears about the outlook for global growth. The pound lagged as polls showed the Conservative party’s lead narrowed ahead of the U.K. election. Brazil’s real fell to its weakest ever level versus the greenback. Crude oil gained.
Hopes that a partial trade deal is just around the corner have pushed a global benchmark of stocks to within 1% of an all-time high. A flurry of buyouts has also helped. Yet while China’s Ministry of Commerce pointed to trade progress in a statement, Hong Kong remains a source of tension, with Beijing summoning America’s ambassador to express its opposition to U.S. interference.
”We’re getting to the point where they need to show us the money,” said Michael Reynolds, investment strategy officer at Glenmede Trust Co. “Talk is one thing but an actual deal on paper, pen to paper, is what is going to dramatically change the market narrative.”
Investors are continuing to weigh the dispute’s impact on the world’s largest economy. Federal Reserve Chairman Jerome Powell struck an upbeat tone during a Monday night speech in which he described the outlook for the American expansion as a glass “more than half full.”
Elsewhere, Bitcoin headed for a 10th day of declines, which would be its longest losing streak on record.
Here are some key events coming up this week:
- Earnings coming on Tuesday include Dell Technologies Inc. and HP Inc (NYSE:HPQ).
- U.S. consumer spending data is due Wednesday, along with GDP, jobless claims and durable goods.
- The U.S. celebrates Thanksgiving on Thursday, when equity and bond markets will be shut.
- Euro-area inflation for October is due Friday.
- The Bank of Korea sets policy on Friday.