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S&P 500 hits record

Index lifted by US economic strength, emerging-market gains

US stocks rose, with the Standard & Poor’s 500 Index touching a record, amid optimism in the strength of the world’s largest economy. Emerging-market equities rose, led by the biggest gain in five weeks for Hong Kong-listed Chinese shares, and the dollar weakened.

The S&P 500 rose 0.3 per cent to 1,878.33 in mid-morning New York trade, after reaching an all-time intraday high. The MSCI Emerging Markets Index gained 0.5 per cent as Hong Kong’s Hang Seng China Enterprises Index climbed 2.4 per cent after entering a bear market on Thursday. Moscow’s Micex Index lost 1.1 per cent. The dollar weakened 0.2 per cent against the euro.

The yield on 10-year Treasuries was little changed at 2.77 per cent. Gold and copper advanced with oil.

US equities have advanced two per cent this week as better-than-estimated economic data has overshadowed concern that benchmark interest rates may rise in the middle of next year.

“Sentiment is positive and the general expectation is that US economic growth is okay,” Henrik Drusebjerg, who helps oversee $220 billion as a senior strategist at Nordea Bank in Copenhagen, said in a phone interview. “The level of growth is still the main thing that investors are concerned about.”

The S&P 500 rose 0.6 per cent on Thursday as reports on leading indicators and regional manufacturing topped forecasts. The index lost 0.6 per cent and Treasury yields jumped the previous day after Federal Reserve Chair Janet Yellen said the central bank’s stimulus programme could end this fall and the rates could rise about six months later.

Stock trading may be subject to unexpected swings on Friday because of a quarterly event known as quadruple witching, when futures and options contracts on indexes and individual stocks expire.

Media General rallied 4.7 per cent after agreeing to buy LIN Media in a deal valued at about $1.6 billion. Symantec slumped 13 per cent after the maker of anti-virus software fired its chief executive officer. Nike slid 3.6 per cent after the world’s largest sporting-goods manufacturer forecast that sales will climb at a slower pace than analysts had predicted.

Developing-market equities headed for a weekly gain of 0.8 per cent, paring their losses this year to 5.7 per cent. The benchmark trades at a price-to-book ratio of 1.4, its cheapest level versus the MSCI World Index since 2004.

Chinese shares rallied amid speculation the government is loosening funding restrictions for property developers and banks to support growth. The Shanghai Composite Index climbed 2.7 per cent, its biggest gain in four months.

The Stoxx Europe 600 Index fell 0.1 per cent. The gauge is poised for its biggest weekly advance in five weeks.

Gold advanced for the first time in five days, rising 0.3 per cent to $1,335.10 an ounce. Bullion slumped this week after reaching a six-month high on March 17 amid turmoil over Ukraine.

Oil rose 0.8 per cent to $99.71 a barrel. Futures are down 1.2 per cent this week.