European stocks rose for the first time in four days and the euro strengthened as regional finance ministers prepared for talks on a Greek bailout. Spanish bonds declined and the cost of insuring against default increased.
The Stoxx Europe 600 Index added 0.2 percent at 6:15 a.m. in New York, while Standard & Poor’s 500 Index futures lost 0.2 percent. The euro appreciated 0.1 percent to $1.3275. The yield on 10-year Spanish bonds rose nine basis points. A gauge of commodities extended the longest winning streak since Dec. 27.
Greek Finance Minister Evangelos Venizelos heads to the meeting in Brussels today after politicians failed to finalize new austerity measures needed to secure a 130 billion-euro ($173 billion) rescue package. European Central Bank President Mario Draghi will probably face questions today on the bank’s possible role in helping Greece cut its debt following a policy meeting.
“History tells us that a deal in Greece will be reached at the last minute,” said Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., which has almost $100 billion under management. “A lot of indications show they are heading in that direction even though there are endless delays.”
Three shares advanced for every two that fell in the Stoxx 600. Daimler AG rallied 3.8 percent to a six-month high, leading gains in automakers, as it reported a 39 percent surge in fourth-quarter profit. Credit Suisse Group AG (CSGN) dropped 2.8 percent as the second-biggest Swiss bank reported a loss in the fourth quarter for the first time since 2008, hurt by “adverse markets” and costs to reorganize the investment bank.
Bull Market
Global stocks entered a bull market yesterday as the MSCI All-Country World Index extended its gain from its October low to 20 percent. Profits beat projections at 49 percent of the 821 companies in the global benchmark that released quarterly results since Jan. 9, according to data compiled by Bloomberg.
The S&P 500 has advanced for two straight days, reaching the highest level since July 7. A government report at 8:30 a.m. in Washington may show initial claims for U.S. jobless benefits rose to 370,000 last week, from 367,000 in the prior period, according to a Bloomberg survey of economists.
The euro strengthened for the third consecutive day against the yen, climbing 0.5 percent. The Dollar Index (DXY), which tracks the U.S. currency against those of six trading partners, declined 0.1 percent, while the greenback fell 0.1 percent against the pound. The yen depreciated versus all but one of its 16 most traded counterparts monitored by Bloomberg.
Default Risk
The extra yield investors demand to hold Spanish 10-year bonds instead of German bunds rose 10 basis points. The yield on the bund fell one basis point to 1.97 percent. The 30-year U.S. Treasury bond yield fell one basis point to 3.14 percent before the government sells $16 billion of February 2042 debt, the third of three auctions this week totaling $72 billion.
The cost of insuring against a default on European government bonds rose from near the lowest in three months, with the Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments climbing four basis points to 325.5.
The S&P GSCI gauge of 24 commodities climbed 0.5 percent. Aluminum rose 1.4 percent and Brent crude advanced 0.6 percent to $117.91 a barrel, the eighth consecutive gain and the longest advance for the March futures contract since October 2009.
The MSCI Emerging Markets Index (MXEF) slipped less than 0.1 percent. The Hang Seng China Enterprises Index (HSCEI) retreated 0.3 percent after data showed inflation accelerated more than economists estimated in January. Hungary’s BUX Index (BUX) fell 1 percent. Benchmark indexes gained at least 0.4 percent in Turkey, Taiwan and South Korea.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net;
To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net
