Global Stocks Rally on Growth Optimism; Oil Drops

• Global Stocks Rally on Growth Optimism; Oil Drops

Global stocks rallied after private American hiring data bolstered confidence in the global economy. Oil headed for a three-week low as U.S. output expanded.

European shares advanced and the MSCI Asia Pacific Index traded at the highest in two years after U.S. benchmarks closed at records. The dollar held on to gains triggered by a report showing companies added more workers to U.S. payrolls in May than forecast. China’s offshore yuan tumbled the most since February amid signs that a funding crunch is beginning to abate. Oil was poised for the biggest weekly drop since May 5 as industrial metals including copper declined.

Global equities extended this year’s advance to more than 10 percent, setting a fresh record, as data showed growth in the world’s largest economy is intact. With investors primed for an interest-rate increase at this month’s Federal Reserve meeting, all eyes will turn Friday to the latest U.S. hiring report.

Traders also continue to watch for upheaval from U.S. President Donald Trump’s administration. Renewable energy stocks were mixed Friday as investors assessed the implications of Trump’s plan to withdraw from the Paris climate pact.

Here are some key upcoming events:

• The U.S. jobs report Friday may bolster the case for a rate increase, with a gain of 182,000 positions expected.
• The U.S. monthly trade balance probably widened to $41,1 billion in April, from $43.7 billion, a separate report may show
• Federal Reserve officials Patrick Harker and Robert Kaplan give speeches ahead of the so-called quiet period going into the central bank’s rate decision later this month.