Canada’s main stock index moved up to hit a record close, while three indexes in New York all set new highs for the second consecutive day.
The S&P/TSX composite index advanced 54.40 points to 17,118.44, after going as high as 17,166.02 in earlier trading.
In New York, the Dow Jones industrial average rose 78.13 points to 28,455.09. The S&P 500 index added 15.85 points to 3,221.22, while the Nasdaq composite moved up 37.74 points to 8,924.96.
The Canadian dollar traded for 75.96 cents US compared with an average of 76.21 cents US on Thursday.
The February crude contract dropped 74 cents to US$60.44 per barrel and the January natural gas contract gained 5.5 cents to roughly US$2.33 per mmBTU.
The February gold contract fell US$3.50 to US$1,480.90 an ounce and the March copper contract retreated about two cents to roughly US$2.81 a pound.
A preliminary U.S.-China trade deal and the Federal Reserve’s increase of short-term liquidity in the repo market have allowed risk assets to gain, said Yousef Abbasi, global market strategist at INTL FCStone Financial Inc in New York.
“The deliverance of Phase One of a trade deal and the Fed getting ahead of any potential systemic-type issues has cleared the path for this market to inch higher,” Abbasi said. “There isn’t anything that can shift sentiment dramatically.”
U.S. President Donald Trump spoke with Chinese President Xi Jinping and claimed progress on issues from trade to North Korea and Hong Kong, but China said Xi accused the United States of interfering in its internal affairs.
The benchmark S&P 500 extended its run of record highs to seven straight sessions, its longest streak in more than two years.
European shares also rallied, with the pan-European STOXX 600 index rising 0.80%. Indexes in Frankfurt and Paris made similar gains in thin trading.
Emerging market stocks rose 0.08%.
Overnight in Asia, MSCI’s broadest index of Asia-Pacific shares outside Japan added a sliver, having risen 1.2% so far this week and almost 5% this month.
Some data reminded investors of potential weak spots in the world economy.
The mood among German consumers deteriorated unexpectedly heading into January, a survey showed, suggesting that household spending in Europe’s largest economy could weaken at the beginning of next year.
Germany’s 10-year government bond yield held steady near six-month highs on rising economic optimism.
The benchmark 10-year Treasury yield rose 1 basis point to 1.9206%.
Sterling traded at $1.3004, down 0.02% on the day after a sharp reversal that left it down 2.4% for the week, its worst weekly fall since October 2017. Former Prime Minister Theresa May’s leadership was questioned at the time, leading the pound to drop 2.5%.
Overnight the pound slipped to below $1.30, a dramatic drop from a 19-month peak of $1.3514 after British Prime Minister Boris Johnson used his sweeping election victory last week to revive the risk of a hard Brexit.
Johnson won approval for his Brexit deal in Parliament, the first step toward fulfilling his election pledge to deliver Britain’s departure from the EU by Jan. 31 and setting December 2020 as a hard deadline to reach a trade agreement.
The Canadian Press, Reuters