U.S. stocks climbed to a record as rising optimism for a trade deal with China combined with solid earnings and bets the Federal Reserve will cut rates. Treasuries slumped at the start of a a week packed with more results and central bank decisions.

The S&P 500 took out its July record after President Donald Trump said the U.S. is ahead of schedule to sign part of the trade deal. Microsoft jumped to a after winning a Pentagon contract, while AT&T climbed following a board shuffle. Tiffany surged after LVMH said it held discussions with the jeweler. PG&E plunged on liability risk from California wildfires. The Stoxx Europe 600 rose even as banks slipped after HSBC’s disappointing earnings. The 10-year Treasury yield hit a six-week high.

The week greeted investors with several doses of positive news, as the signs of progress joined with expectations for further monetary stimulus from the Fed after its Wednesday meeting. Corporate earnings continue to roll in with results topping estimates at a solid clip. Alphabet is set to release results after the close Monday.

“Equities are striding to new all-time highs as optimism is hitting investors from all directions,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.

In the U.K., the pound steadied versus the euro after the European Union agreed to a Brexit deadline extension, easing the risk of leaving the bloc without a deal on Oct. 31. European bonds edged lower, while gilts were steady. An Asia-Pacific equities benchmark rose for the fifth gain in six sessions. Shares increased in Shanghai, with blockchain-related stocks climbing after Chinese President Xi Jinping hailed the technology.

Elsewhere, Argentine bonds fell after opposition candidate Alberto Fernandez secured victory in Sunday’s presidential election, with business-friendly incumbent Mauricio Macri conceding. WTI crude oil slipped after the biggest weekly advance in more than a month. Bitcoin jumped as much as 16 per cent from Friday, before paring its gain by about one-half.

Here are some key events coming up this week:

Earnings include: Alphabet, Facebook, Pfizer, Airbus, Apple, Exxon Mobil, BP, PetroChina, Credit Suisse, Nomura and Macquarie Group.
The Fed is expected to lower the main interest rate when policy makers decide on Wednesday. Futures have priced in about 23 basis points of reduction.
U.S. economic growth is forecast to have slowed to 1.6 per cent in the third quarter. GDP data are due Wednesday.
The Bank of Japan sets policy on Thursday and Governor Haruhiko Kuroda will hold a news conference.
Friday brings the monthly U.S. non-farm payrolls report.

These are some of the main moves in markets:

Stocks

The S&P 500 Index advanced 0.6 per cent as of 4 p.m. New York time.
The Nasdaq 100 jumped 1 per cent to a record. The Dow Jones Industrial Average added 0.5 per cent.
The Stoxx Europe 600 Index added 0.3 per cent.
The MSCI All-Country World Index gained 0.3 per cent.
The MSCI Emerging Market Index jumped 0.7 per cent.

Currencies

The Bloomberg Dollar Spot Index decreased 0.1 per cent.
The euro climbed 0.2 per cent to US$1.1101.
The British pound rose 0.3  per cent to US$1.2864.
The Japanese yen slipped 0.3 per cent to 108.98 per dollar.

Bonds

The yield on 10-year Treasuries advanced five basis points to 1.84 per cent.
The yield on two-year Treasuries advanced three basis points to 1.64 per cent.
Britain’s 10-year yield climbed four basis points to 0.722 per cent.
Japan’s 10-year yield climbed one basis point to -0.122 per cent.

Commodities

West Texas Intermediate crude fell 1.5 per cent to US$55.80 a barrel.
Gold futures decreased 0.7 per cent to US$1,494.80 an ounce.
Palladium rose above US$1,800 an ounce for the first time.