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Investors stand at trading terminals in front of an electronic stock board at a securities brokerage in Shanghai, China, on Friday, June 9, 2017. Photographer: Qilai Shen/Bloomberg

(bloomberg)

(Bloomberg) -- U.S. stocks climbed, sending the S&P 500 Index to an intraday record, as investors speculated the Trump administration would ease trade tensions with China. The yen and Treasuries pared losses after President Donald Trump’s longtime lawyer pleaded guilty to federal charges.

Michael D. Cohen’s plea deal, confirmed after the markets closed in New York, included his saying he was directed to violate campaign law at the direction of a candidate for federal office. Also following the regular session, Trump’s former campaign chairman was found guilty of tax fraud, among other charges. The news sparked mild demand for haven assets.

Earlier, the S&P 500 Index capped a fourth day of gains, while a gauge of small caps closed at an all-time high. The dollar extended its slide ahead of low-level trade talks with China, and the 10-year Treasury yield rose for first time in three days before a meeting of central bankers later in the week.

“This is an abnormally sentiment-driven market that we’ve had all year, so a new high could cause on the margin some investors to either get nervous or to get bullish,” Max Gokhman, head of asset allocation for Pacific Life Fund Advisors, which manages $40 billion, said in an interview at Bloomberg’s New York headquarters. “I would argue probably more nervousness than bullishness at this point because we’re hitting a new high amidst failing trade talks with China, amidst peaking margins.”

U.S. shares rose Tuesday amid signs that talks between Chinese and American trade representatives may lead to some cooling of rhetoric on the monthslong spat. The Trump administration plans to slap tariffs on $16 billion of goods and China is poised to retaliate. At the same time, investors await clues on monetary policy as central bankers gather in Jackson Hole Friday.

Elsewhere, the Brazilian real fell to the weakest against the dollar in two and half years ahead of the nation’s most uncertain election in more than 30 years. Turkey’s lira edged higher after two days of declines; the country’s markets are closed for most of this week. Futures in crude oil and industrial metals climbed, as emerging-market stocks and currencies advanced.

Terminal users can read more in our Bloomberg Markets Live blog here.

Here are some key events coming up this week:

  • Companies announcing earnings include Alibaba, Royal Bank of Canada, Lowe’s, Target, Qantas and China’s Bank of Communications.
  • Central bankers gather at the Kansas City Fed’s annual Jackson Hole symposium, where Federal Reserve Chairman Jerome Powell speaks Friday.
  • The Fed releases the minutes from latest FOMC meeting on Wednesday.
  • Euro zone preliminary PMI data for August is due on Thursday.

These are the main moves in markets:

Stocks

  • The S&P 500 Index rose 0.2 percent to 2,862.96 as of 4 p.m. New York time.
  • The Russell 2000 Index gain 1.1 percent to an all-time record.
  • The Stoxx Europe 600 Index gained 0.2 percent.
  • The MSCI Emerging Market Index jumped 1.2 percent to the highest in more than a week.
  • Germany’s DAX Index rose 0.4 percent to the highest in more than a week.
  • The U.K.’s FTSE 100 Index fell 0.3 percent.

Currencies

  • The Bloomberg Dollar Spot Index dropped 0.4 percent to the lowest in more than a week.
  • The euro increased 0.8 percent to $1.1572.
  • The Japanese yen fell 0.3 percent to 110.34 per dollar.
  • Brazilian real dropped 1.4 percent to $4.03, the lowest in more than two years.

Bonds

  • The yield on 10-year Treasuries gained three basis points to 2.84 percent.
  • Germany’s 10-year yield gained three basis points to 0.33 percent, the highest in a more than a week.

Commodities

  • Gold rose 0.3 percent at $1,193.63 an ounce.
  • West Texas crude rose 1.3 percent to $67.32 per barrel.
  • LME copper gained 0.9 percent to $6,046.50 per metric ton, the highest in more than a week.

--With assistance from Anna Edwards and Todd White.

To contact the reporters on this story: Randall Jensen in New York at rjensen18@bloomberg.net;Sarah Ponczek in New York at sponczek2@bloomberg.net

To contact the editors responsible for this story: Jeremy Herron at jherron8@bloomberg.net, Samuel Potter

©2018 Bloomberg L.P.

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