U.S. stock benchmarks climbed to records, with the Standard & Poor’s 500 Index poised for a fifth week of gains, as optimism in the global economy grew after central banks in China and Europe signaled additional stimulus measures.
The S&P 500 rose 0.5 percent to 2,062.77 at 9:31 a.m. in New York. The index has advanced 1.1 percent this week, pushing its gains in 2014 to 12 percent.
“Asia is strong on the interest rates, and Europe is strong on the Draghi comments,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “There’s a positive flow coming through to U.S. businesses. A rising tide lifts all boats.”
European Central Bank President Mario Draghi said he will do what is necessary to raise inflation in the region as fast as possible. Should the current policy not be effective, the ECB will “broaden even more the channels” through which it intervenes, by adjusting the size, pace and composition of asset purchases, he said in Frankfurt.
Global equities extended gains after China cut its benchmark interest rates for the first time since July 2012. The People’s Bank of China lowered its one-year deposit rate and the one-year lending rate, with changes effective tomorrow, according to its website.
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