U.S. stocks climbed back to records in thin post-holiday trading as investors assess valuations with pandemic still raging in parts of Europe and the U.S. Oil retreated amid rising tensions among OPEC+ members.

The S&P 500 added to its 11 per cent November rally. The stock market closes at 1 p.m. in New York, while bond trading ends an hour later. Treasuries advanced and the dollar headed for a second weekly decline.

The Stoxx Europe 600 index fluctuated, with Electricite de France SA rising as much as 7.7 per cent following reports that France and the EU are close to reaching a deal on nuclear regulation. Banco de Sabadell SA plunged after terminating talks with Banco Bilbao Vizcaya Argentaria SA.

Global stocks are on track for the best month on record, up 13%, and that’s lifted valuations to near the highest in about 20 years. Still, sentiment remains fragile as the virus toll continues to rise in Europe and the U.S., while economic recoveries wobble. Investors are pinning their hopes on a swift rollout of vaccines, but the logistical challenges are considerable.

“To see whether the market will continue to have legs we will have to have confirmation of those vaccine hopes,” Nannette Hechler-Fayd’Herbe, Credit Suisse’s chief investment officer for international wealth management and global head of economics and research, said in an interview with Bloomberg TV. “So very quickly now we want to see approvals, we want to see production outlooks as far as the vaccines’ broader distribution is concerned.”

Political clarity has also driven risk assets this month, as President-elect Joe Biden continues his transition to power. President Donald Trump said he’ll relinquish power if the Electoral College affirms Biden’s win, but he signaled he may never formally concede defeat, and may skip the Democrat’s inauguration.

In China, data showed profits at industrial enterprises surged at the fastest pace in a single month in almost nine years in October, a further sign the country’s economic recovery is gathering pace.

Here are some key events coming up:

  • U.S. stock market closes at 1 p.m. on Friday.
  • The week ends with Black Friday, the traditional start of the U.S. holiday shopping season.

Here are the main moves in markets:

Stocks

  • The S&P 500 climbed 0.3 per cent at 9:31 a.m. in New York.
  • The Stoxx Europe 600 index added 0.1 per cent.
  • The MSCI Asia Pacific Index rose 0.2 per cent.
  • The MSCI Emerging Markets Index was little changed.

Currencies

  • The Bloomberg Dollar Spot Index fell less than 0.1 per cent.
  • The euro rose 0.1 per cent to US$1.1929.
  • The British pound gained 0.2 per cent to US$1.3329.
  • The yen was at 104.16 per dollar, up 0.1 per cent.

Bonds

  • The yield on 10-year Treasuries fell three basis points to 0.86 per cent.
  • Germany’s 10-year yield was little changed at -0.59 per cent.

Commodities

  • West Texas Intermediate crude decreased 0.9 per cent to US$45.33 a barrel.
  • Gold dipped 0.5 per cent to US$1,805.90 an ounce.

--With assistance from Adam Haigh and Francine Lacqua.