Progress in trade talks send world stock markets higher

Progress in the U.S.-China trade talks helped send world stock markets broadly higher on Friday and pulled investors out of the safety of government bonds.

Equities surged to a 10-week high as the U.S. consumer outlook brightened and positive developments in China trade talks overshadowed lingering concerns about global growth. Treasury yields climbed, while the dollar retreated after an early-morning rally.

The S&P 500 Index closed at session highs Friday, with all sectors gaining, on reports that the U.S. and China had reached consensus in principle on the main topics in their trade negotiations. It was the third straight weekly gain for the benchmark.

Trade continues to dominate markets as the two sides race to reach a deal that would avert a tariff increase on Chinese goods by March 1. At the White House Friday, President Donald Trump said that the U.S. is “a lot closer” to a deal with China and that he might “extend the date.”

In Europe, banks and miners helped drive gains in the Stoxx 600 Index. Asian shares retreated, with Chinese stocks falling as weak factory prices highlighted the tough environment for industrial profitability, adding to other disappointing data from major economies. Elsewhere, West Texas crude hit a 12-week high on supply cuts and metals advanced. Emergingmarket shares fell, while EM currencies edged higher.

MSCI’s gauge of stocks across the globe gained 0.57 percent. The index is up nearly 9 percent for the year.

Though there were signs of progress in the trade discussions, some investors remained cautious on whether tariffs would soon be eliminated.

Crude oil reached 2019 highs above $65 per barrel after OPEC-led supply cuts and a biggerthan-expected cut by Saudi Arabia this week encouraged investors. The global Brent benchmark gained 1.5 percent to $65.57 per barrel. It has risen over 4.5 percent this week. U.S. crude rose 1.7 percent to $55.35 per barrel.