Chris Prentice and Stella Qiu
NEW YORK/SYDNEY (Reuters) - Wall Street was awarded on Friday as European stocks rose to the fifth straight gain, helping to maintain a rally in the U.S.-China trade truce.
The biggest weekly loss since November sets the price of gold.
Oil futures increased weekly, but remained relatively low, further supporting stocks and bonds.
MSCI's global stock scale rose 0.5%.
Consumer sentiment in the U.S. has plunged further as inflation expectations surged over the year, as households’ economic impact on President Donald Trump’s aggressive and often volatile trade policies, according to a survey by the University of Michigan.
Treasury output fell after data showed weaker housing starting point.
The Dow Jones Industrial Average rose 331.99 points, or 0.78%, to 42,654.74, the S&P 500 Rose 41.45 points, or 0.70%, to 5,958.38, and the Nasdaq Comprehensive Rose Rose 98.78 points, or 0.52%, or 0.52%, to 19,211.10.
This is largely a positive week for the global stock market, as investors cheer for a tariff truce between the United States and China significantly reduce the risk of a global recession.
"The risky mood is still on the market," said Nabil Milali, strategist for Edmond de Rothschild.
“It’s a very good thing for European stocks to have more positive surprises.”
The Pan-European STOXX 600 index rose 0.4%, winning earnings for the fifth week as strong corporate performance grew amid the pause of the trade war.
The LSEG data showed resilience in the region earlier this week, and the first quarter results are now expected to be more than previously thought.
U.S. import prices rose unexpectedly in April as rising capital goods costs offset cheap energy products.
"We are in the early stages of the trade transition. As of April, these effects are not clear; however, we know that uncertainty has left home builders out of balance," Jeffrey Roach, chief economist at LPL Financial in Charlotte, North Carolina, on import prices and housing and construction data.
The data show that single-family housing on a seasonal basis started to drop by 2.1% as tariffs on imported materials and high mortgage rates remain barriers to the housing market. The report helps drive downside.
MSCI's major Asia Pacific stocks rose more than 3% this week.
Oil prices rose on the U.S.-China deal this week before falling 2% on Thursday as OPEC+ output rate hikes and the outlook for the Iran nuclear deal increased supply pressure.
Brent futures rose 1.4%. (or)
U.S. core retail sales soft sales, producer prices fell unexpectedly in April, reducing market bets from the Fed this year to 57 basis points and 49 basis points from 49 basis points.
“Everyday and overnight, mitigation of U.S. retail sales and PPI were evident in the bond market,” said Kenneth Broux, head of company research FX and head of interest rates at Societe Generale.
“This pours cold water into the sell-off of (global) bonds and puts the brakes on the hawkish resequence of the Fed’s outlook.”
The benchmark 10-year treasury yield fell 1.2 basis points to 4.443%, extending Thursday's decline. (us/)
Walmart, the world's largest retailer, said prices must start raising later this month due to high tariff costs.
"Remedies are only temporary," said Edmond de Rothschild's Milali. Because the tariff shock remains "very important."
The currency of the US dollar is higher than that of a basket. (frx/)
Spot gold fell 1.38% to $3,195.16 per ounce, while U.S. gold futures fell 1.2%. (gol/)
(Reported by Chris Prentice, Stella Qiu and Linda Pasquini; edited by Amanda Cooper, Kirsten Donovan, Deepa Babington, Chizu Nomiyama and Aurora Ellis)