US stocks hover near all-time highs, Treasuries rise

TRADE WAR SALVOS WITH CHINA FUEL BOND GAINS, WHILE ROUBLE AND LIRA SLUMP

US stocks hovered within striking distance of all-time highs, while Treasuries rose as investors weighed the latest salvos in the trade war with China and sanctions that torpedoed the Russian rouble.

Oil held near a seven-week low.

The S&P 500 Index swung between gains and losses about half a percentage point from its January high as data underscored the health of the US job market. Technology shares paced gains. The 10-year Treasury yield slumped to 2.93 per cent after producer prices stagnated The Nasdaq was firmly higher yesterday, propped up by the highflying technology trio of Apple, Amazon and Microsoft.

The S&P tech sector was up 0.2 per cent. Tech stocks have been driving a sharp recovery in the S&P since a market rout in February, pushing the index close to its record high. Shares of Apple rose 1 per cent, while Amazon’s were up 0.5 per cent and Microsoft’s, 0.3 per cent. “The S&P has been climbing gradually amid geopolitical and trade concerns,” said Andre Bakhos, managing director at New Vines Capital LLC in New Jersey. “Investor mindset has been predicated on a strong economy and longer-term perspective.” Fewer Americans filing for unemployment benefits suggested a strong economy was helping the labour market counter trade tensions. last month. The greenback climbed, while emergingmarket currencies weakened for a second day, with Turkey’s lira and Russia’s rouble extending their slump as disputes with the US deepened.

Geopolitical tensions between the US and other countries are setting the tone for markets, with China responding to the Trump administration’s latest trade war volley with additional tariffs of its own. The rouble hit a two-year low after the US announced new sanctions on Russia over the March 4 nerve-agent attack on a former double agent in the UK. Turkey’s lira plunged to a record and bond yields climbed as a dispute over the detention of an American pastor dragged on. Elsewhere, oil held steady after Wednesday’s plunge sparked by China’s decision to slap 25 per cent duties on US imports including petroleum products. Most industrial metals gained and gold edged higher.