European markets higher as dollar resumes decline

On Friday European equities headed higher after a mixed session in Asia, while the dollar resumed a decline that was briefly interrupted when President Donald Trump waded into the unusual public discussion over exchange rates, saying he expected a stronger greenback.

The Stoxx Europe 600 Index climbed, with personal and household-goods shares leading gains after LVMH quarterly sales beat estimates. U.S. equity futures inched higher. Earlier in Asia, Japanese stocks fell while those in South Korea and Hong Kong climbed. Sterling gained after the U.K. economy expanded faster than expected. Treasuries nudged lower and gold rose.

Trump reiterated his support of a strong dollar on Friday. His comments the previous day roiled a market where traders were already on edge after U.S. Treasury Secretary Steven Mnuchin earlier said he favored a weak dollar. The volatility may spur a reassessment of the global risk-on rally that’s stretched valuations across asset classes. Investors are also casting a watchful eye on the World Economic Forum in Davos, where Trump will deliver a keynote speech as his administration ramps up protectionist rhetoric.

Elsewhere, West Texas crude oil edged higher after surging to the highest level in more than three years Wednesday, and gold resumed an advance to trade near an 18-month high. Bitcoin dropped below $11,000.

The Stoxx Europe 600 Index advanced 0.5 percent as of 11:00 a.m. London time, the biggest gain in a week. The U.K.’s FTSE 100 Index advanced 0.3 percent. Germany’s DAX Index gained 0.1 percent. The S&P 500 Index increased 0.1 percent to the highest on record. Topix index fell 0.3 percent; Hong Kong’s Hang Seng Index rose 1.5 percent; Kospi index rose 0.5 percent.

The euro advanced 0.5 percent to $1.2457, the strongest in more than three years. The British pound climbed 0.7 percent to $1.424. The Japanese yen increased 0.3 percent to 109.12 per dollar, the strongest in 20 weeks

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.