Sept. 9 (Bloomberg) -- Stocks climbed, sending the Standard & Poor’s 500 Index to a one-month high, after American jobless claims fell more than forecast, tempering concern that the economic recovery is slowing. Treasuries declined, Australia’s dollar strengthened and oil rallied.
The S&P 500 gained 0.9 percent to 1,108.91 at 9:45 a.m. in New York, the highest level since Aug. 11. The Stoxx Europe 600 Index advanced 1 percent, a four-month high. The yield on 10- year Treasuries rose 5 basis points to 2.70 percent. The Australian dollar appreciated against all 16 of its most-traded peers, and oil climbed above $75 a barrel.
Initial jobless claims dropped by 27,000 to 451,000 in the week ended Sept. 4, according to the Labor Department. The Fed said yesterday the U.S. economy kept its expansion while showing “widespread signs of a deceleration” in mid-July through the end of August. European Central Bank council member Erkki Liikanen said a double dip in the global economy is “not likely.”
“Any positive news on the employment front is good news for stocks,” said Mark Bronzo, an Irvington, New York-based fund manager at Security Global Investors, which oversees $21 billion. “It helps alleviate the negative sentiment we’ve had over the summer as markets struggled because of pessimism about the economy.”
The S&P 500 rose for the sixth time in seven days after the jobs report. Applications for unemployment benefits were projected to fall to 470,000 from a previously reported 472,000 for the prior week, according to the median forecast of 46 economists in a Bloomberg survey.
The trade deficit shrank 14 percent, the most since February 2009, to $42.8 billion, as imports fell and exports climbed to the highest level in almost two years, Commerce Department figures showed today in Washington. Economists forecast a deficit of $47 billion, according to the median of 73 projections in a Bloomberg News survey.
Asia, Europe
The MSCI World Index of stocks in 24 developed nations gained 1 percent. The MSCI Asia Pacific Index jumped 0.9 percent. National Australia Bank Ltd. rallied 3.7 percent on optimism it won’t need to raise capital to finance a takeover. SM Prime Holdings Inc., the Philippines’ biggest shopping-mall operator, jumped 9.7 percent after the nation’s exports increased.
“Some of the extreme bearishness of the past few weeks has been flowing out,” said Stephen Halmarick, who helps manage about $135 billion as head of investment-markets research at Colonial First State Global Asset Management in Sydney.
Almost six shares rose for every one that fell in Europe’s Stoxx 600. Daimler AG led carmakers higher, advancing 3 percent as Credit Suisse Group AG lifted its per-share earnings estimate. Home Retail Group Plc retreated 3.5 percent after forecasting profit at the bottom end of estimates.
Australia’s dollar appreciated 1 percent to 92.70 U.S. cents and climbed 0.8 percent to 77.62 yen. The nation’s employers added 30,900 workers in August, exceeding the median forecast for 25,000 in a Bloomberg News survey of 25 economists, the statistics bureau said in Sydney today. The dollar weakened against all but one of its 16 major peers, retreating 0.2 percent to 83.75 yen and slipping 0.3 percent versus the euro.
Pound Weakens
The pound declined against all of its counterparts, weakening 0.2 percent to $1.5439, as government statistics showed the U.K. trade deficit widened to a record in July.
Crude oil for October delivery rose 1.3 percent to $75.62 on the New York Mercantile Exchange. Rubber, copper, zinc, soybeans and sugar slipped on Chinese exchanges after the Securities Times said regulators are investigating large positions in rubber futures. An official at the China Securities Regulatory Commission declined to comment. Copper for delivery in three months fell 1.2 percent on the London Metal Exchange. Aluminum, zinc and lead also dropped.
The 30-year Treasury bond yield was 6 basis points higher at 3.79 percent before the government sells $13 billion of the securities, the third of three auctions this week totaling $67 billion.
Greece, Ireland
Greece’s 10-year bond yields fell 11 basis points to 11.84 percent. Norway, which has amassed the world’s second-biggest sovereign wealth fund, says Greece won’t default on its debts and its $450 billion Government Pension Fund Global has stocked up on Greek debt.
Ireland sold 400 million euros ($509 million) of treasury bills at the lower end of forecast amounts a day after the government said it will split Anglo Irish Bank Corp. to stabilize the cost of the bank bailout. Investors bid for 5.4 times the 250 million euros of debt sold due April 2011, up from 4.1 times at the Aug. 26 sale. The yield dropped to an average of 2.19 percent, down from 2.348 percent.
The MSCI Emerging Markets Index advanced 0.6 percent. The Philippine Stock Exchange gained for an eighth day and closed up 2.6 percent at an all-time high. Russia’s Micex Index climbed 1.5 percent as oil advanced. China’s Shanghai Composite Index dropped 1.4 percent, the most in two weeks, as increasing property prices fueled concern the government will step up measures to curb speculation.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Nikolaj Gammeltoft in New York at ngammeltoft@bloomberg.net
