The S&P 500 Index closed on Friday at an all-time high. Stocks gained 0.7%, as retail sales sparked optimism in the economy and JPMorgan Chase & Co. signalled tax cuts will bolster profits.
The dollar weakened the most since March, sending the euro to a three-year high and the pound to its strongest since June 2016.
US Treasury yields rose, sending prices lower, as the two-year yield over 2 percent for the first time since 2008 as investors assessed an unexpected acceleration in core inflation that likely boosts the Federal Reserve’s case for higher rates.
US Markets are closed today for the Martin Luther King day.
In Europe, equities gained rising 0.5%, following reports that German policymakers are set to resolve a months-long political stalemate. This added to news that the European Central Bank is open to tweaking its policy guidance soon to align it with a strengthening economy.
In Asia overnight, Japanese equities gained even as the yen advanced as traders continued to pile out of bets against the Japanese currency. Both the yen and euro have been lifted by bets the Japanese and European central banks this year will scale back their monetary stimulus.
Chinese equities retreated falling 0.5%, as the yuan touched a two-year high after the People’s Bank of China raised the currency’s fixing to the highest since May 2016.