Emerging-market economies face inflation risk as policymakers around the globe cut interest rates to stimulate growth, said Quincy Krosby, chief market strategist at Prudential Financial Inc.’s annuities business.
U.S. stocks rose, as small-cap and Internet shares extended advances on one of the slowest trading days of the year. The yen strengthened to a three-month high versus the dollar while oil touched a four-week high.
Treasuries rallied with gold and the dollar retreated after slower growth in U.S. payrolls last month eased concern stimulus cuts would accelerate. The Standard & Poor’s 500 Index rose to cap a weekly gain.
U.S. stocks fell a third day amid concern an improving economy will cause the Federal Reserve to reduce monetary stimulus, while 10-year Treasuries advanced as the central bank bought debt. The pound climbed to near a two- year high against the dollar and crude oil surged.