London
US stocks rose toward records and the dollar gained amid continued optimism on the economy’s strength after retail sales topped estimates. The euro turned lower as the European Central Bank remained cautious about the prospects for reaching its inflation goals.
The S&P 500 Index edged toward a fresh record, with the data on retail spending coming a day after the Federal Reserve raised its growth targets. The 10-year Treasury yield climbed with the greenback. Technology shares led stocks in Europe lower. Sterling slipped after the Bank of England kept its policy rate unchanged. Turkey’s lira fell after its central bank raised a key rate less than investors expected.
The data showing US retail sales rose more than forecast in November signalled a broad strengthening of consumer demand as the holiday shopping season got under way, bolstering optimism in the world’s largest economy. The Fed on Wednesday raised its growth targets as the labour market tightens. The US central bank still didn’t see inflation accelerating, a sentiment echoed Thursday by the ECB.
In comments after Europe’s central bank kept rates steady, President Mario Draghi stopped short of declaring that the lender will meet its inflation goal in 2020, signalling that the Euro-area economy isn’t yet strong enough to warrant cutting monetary stimulus. That capped gains in the common currency.
