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(Bloomberg) -- The dollar climbed, Treasuries fell and U.S. stocks headed for a sixth straight weekly gain on bets Donald Trump was closer to pulling off a tax overhaul after the Senate approved a budget vehicle for tax cuts.
All three U.S. equity benchmarks were poised for records. The dollar touched a three-month high and 10-year Treasury yields approached 2.4 percent amid speculation the Trump administration was moving closer to selecting the next Federal Reserve chief. The Canadian dollar tumbled after inflation and retail sales trailed estimates, while a rally in industrial and financial shares pushed the S&P/TSX Composite Index toward this year’s high.
European shares erased some of Thursday’s losses on the back of rising metal prices and positive corporate earnings. The euro slipped as investors eyed political developments in Spain and negotiations over Britain’s departure from the European Union.
People familiar with the process of selecting the next Fed chief said Trump’s advisers are steering him toward either Jerome Powell, a member of the Fed Board of Governors, or Stanford economist John Taylor. Trump’s top legislative priority took a major step forward as the Senate narrowly approved a budget vehicle for tax cuts.
Meanwhile, sales of previously owned U.S. homes increased unexpectedly in September, showing demand is stabilizing in the aftermath of hurricanes Harvey and Irma.
These are some key upcoming events:
- Cleveland Fed President Loretta Mester speaks Friday, followed by Fed Chair Janet Yellen Saturday.
- The big highlight of the weekend at China’s Communist Party Congress will be a discussion on reforms for state-owned Chinese companies. On Friday, delegates debate changes to the party constitution and culture officials brief the media.
- Japan goes to the polls on Sunday with a win tipped for Prime Minister Shinzo Abe. Read more here.
Terminal subscribers can read more on our markets blog.
Here are the main moves in markets:
- The S&P 500 Index added 0.3 percent as of 11:41 a.m. in New York.
- The Stoxx Europe 600 Index rose 0.3 percent.
- The U.K.’s FTSE 100 Index climbed 0.2 percent.
- Japan’s Nikkei 225 Stock Average gained less than 0.05 percent to the highest in about 21 years.
- The MSCI Emerging Market Index increased 0.4 percent.
- The Bloomberg Dollar Spot Index gained 0.6 percent.
- The euro fell 0.7 percent to $1.1767.
- The British pound increased 0.1 percent to $1.3175.
- The Japanese yen decreased 0.9 percent to 113.55 per dollar, the weakest in 14 weeks.
- The yield on 10-year Treasuries rose seven basis points to 2.39 percent, a five-month high.
- Germany’s 10-year yield climbed five basis points to 0.45 percent.
- Britain’s 10-year yield added five basis points to 1.33 percent.
- West Texas Intermediate crude rose 0.3 percent to $51.45 a barrel.
- Gold dipped 0.8 percent to $1,279.65 an ounce.
- Copper fell 0.4 percent to $3.156 a pound.
--With assistance from Netty Ismail Adam Haigh Andreea Papuc Robert Brand Samuel Potter and Kristine Aquino
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