BLBG:Stocks, Euro Gain as German Confidence Climbs
European stocks rose for the first time in three days and the euro strengthened after German business confidence climbed more than forecast. U.S. equity- index futures and commodities gained.
The Stoxx Europe 600 Index climbed 0.3 percent at 9:10 a.m. in London. Standard & Poor’s 500 Index futures added 0.4 percent. Italian 10-year bond yields rose six basis points to 5.57 percent. The euro appreciated 0.5 percent to $1.3319. The Dollar Index (DXY), which tracks the U.S. currency against those of six trading partners, dropped 0.3 percent. The S&P GSCI gauge of 24 commodities climbed 0.3 percent. Platinum gained to a five- month high.
A gauge of business climate climbed for a fourth month in February to the highest reading since July, the Munich-based Ifo institute said. Economists predicted an increase to 108.8, according to the median of 38 estimates in a Bloomberg survey. Target Corp., Sears Holdings Corp. and Kohl’s Corp. are among U.S. companies scheduled to report earnings today.
“If the world is fine and we get good growth indicators, the U.S. dollar will go down because we know there’s plenty of liquidity out there,” said Khoon Goh, a senior currency strategist at ANZ National Bank Ltd. in Singapore. “Now that we’ve got Greece out of the way, the market can go back to focusing on fundamentals.”
Three shares gained for every two that fell in the Stoxx 600 (SXXP). Swiss Re Ltd. advanced 3.9 percent after the world’s second-biggest reinsurer increased its 2011 dividend as fourth- quarter profit exceeded analyst estimates. Commerzbank AG (CBK) slipped 3.6 percent as Germany’s second-largest bank said it will ask investors to swap hybrid capital instruments trading below face value for new shares.
Hewlett-Packard
The increase in S&P 500 futures indicated the U.S. gauge will rebound from yesterday’s 0.3 percent drop. Hewlett-Packard Co. fell 1.9 percent in Germany after it forecast fiscal second- quarter profit that fell short of analysts’ estimates as consumers curtailed personal-computer purchases.
The MSCI Emerging Markets Index (MXEF) declined 0.4 percent, the most in a week. South Korea’s Kospi Index (KOSPI) fell 1 percent as technology companies fell after Hewlett-Packard’s profit forecast. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies traded in Hong Kong slipped 0.9 percent.
South Africa’s rand strengthened 0.7 percent against the dollar after Finance Minister Pravin Gordhan said a move to rein in the budget deficit faster than planned will shield the economy and prevent a credit-rating downgrade.
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: Mark Gilbert at magilbert@bloomberg.net
