US shares have advanced and the Dow Jones Industrial Average closed at a record for a second day, after American economic data fuelled a rise in Treasury yields, lifting financial stocks.
The ADP National Employment Report showed private payrolls jumped by 230,000 jobs in September, the largest gain since February. A report from the Institute for Supply Management showed services sector activity hit a 21-year high in September.
The data fed expectations for a US Federal Reserve interest rate hike in December. The yield on the 10-year US Treasury note touched its highest level in over seven years at 3.179 per cent and the two-year yield hit its highest in more than a decade.
Rising yields boosted financial shares, putting the S&P 500 within striking distance of a record. Financials were also aided by signs Italy would cut its budget deficit and lower its debt, easing a concern that had pressured global stock markets.