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Pedestrians are reflected in an electronic stock board outside a securities firm in Tokyo, Japan, on Thursday, Aug. 30, 2018. Japan's Topix index closed lower after fluctuating as investors assessed trade frictions and geopolitical risks.

(bloomberg)

(Bloomberg) -- Gains in the information technology and health care sectors helped to propel U.S. stocks higher for a fourth day. Turkey’s lira jumped after a rate hike, and the dollar fell after data showed a gauge of underlying U.S. inflation unexpectedly cooled in August.

Equities pulled back earlier from the day’s highs after President Donald Trump tweeted that U.S. isn’t under pressure to reach a trade agreement with China. While speculation on trade continues to dictate investor sentiment, the consumer price data and the resumption of the rally in tech kept shares afloat. The MSCI Asia Pacific Index climbed for the first time in 11 sessions, with equities rallying in Shanghai and Hong Kong.

“The big thing about tech today is it feels like a relief rally,” said Chris Zaccarelli, chief investment officer at Independence Advisor Alliance in Charlotte, North Carolina. “There was extreme pessimism in terms of what was happening with tariffs potentially being put in place this week.”

The pound rose after the Bank of England kept rates steady as expected, and strengthened more as the greenback slipped. The euro also climbed, after the ECB’s predicted hold and as President Mario Draghi expressed confidence on wage growth and the outlook for inflation. Turkey’s lira surged after the larger-than-expected move by the Turkish central bank.

In the end, markets appear to be giving a cautious welcome to the earlier news that the U.S. and Chinese governments are working out the details for a new round of trade talks, just days after Trump threatened to slap tariff hikes on nearly all goods from China. Emerging-market assets -- among the hardest hit by the protectionist spat -- rallied.

Elsewhere, crude oil pared two days of gains made on the outlook for tighter supply. The potential impact on commodities from Hurricane Florence faded with lower wind speeds.

Here are some key events coming up this week:

  • China releases August industrial production, retail sales data on Friday.
  • U.S. retail sales, industrial production, consumer sentiment on Friday.

These are the main moves in markets:

Stocks

  • The S&P 500 Index rose 0.5 percent as of 4:04 p.m. in New York, while the Dow Jones Industrial Average gained 0.6 percent and the Nasdaq Composite Index jumped 0.8 percent.
  • The Stoxx Europe 600 fell 0.2 percent.
  • The U.K.’s FTSE 100 fell 0.4 percent.
  • Germany’s DAX Index climbed 0.2 percent higher.
  • The MSCI Emerging Market Index gained 1.4 percent.
  • The MSCI Asia Pacific Index rose 1 percent, after reaching the highest in a week on the first advance in more than two weeks.

Currencies

  • The Bloomberg Dollar Spot Index dropped 03 percent.
  • The euro gained 0.5 percent to $1.1684, reaching the strongest in more than two weeks on the biggest increase in more than two weeks.
  • The British pound rose 0.5 percent to $1.3106, the strongest in six weeks.
  • The Turkish lira jumped 4.1 percent to 6.0925 per dollar, reaching the strongest in more than two weeks on the largest jump in more than four weeks.

Bonds

  • The yield on 10-year Treasuries gained less than one basis point to 2.97 percent, while the two-year note yield rose less than one basis point to 2.75 percent.
  • Germany’s 10-year yield rose one basis point to 0.42 percent.
  • Britain’s 10-year yield rose two basis points to 1.50 percent.
  • Italy’s 10-year yield fell one basis points to 2.95 percent.

Commodities

  • West Texas Intermediate crude dropped 2.3 percent to $68.78 a barrel.
  • Gold slipped 0.4 percent to $1,201.43 an ounce.

To contact the reporter on this story: Sarah Ponczek in New York at sponczek2@bloomberg.net

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

©2018 Bloomberg L.P.

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