BLBG:Stocks Decline as Treasuries Advance; Commodities Climb
European stocks declined for a fifth day, U.S. index futures were little changed and Treasuries advanced. Commodities climbed before a report that may show American home sales increased.
The Stoxx Europe 600 Index fell 0.3 percent at 7:10 a.m. in New York. Standard & Poor’s 500 Index futures swung between gains and losses after earlier rising 0.5 percent. The yield on the 10-year Treasury note dropped three basis points to 2.25 percent. Copper climbed 1.2 percent and oil jumped 0.5 percent.
Global equities are headed for their biggest weekly decline this year as reports showed manufacturing contracted in Europe and China. Sales of new homes in the U.S. probably rose last month to the highest level since May 2010, economists said before a Commerce Department report. Federal Reserve Bank of St. Louis President James Bullard said in Hong Kong today that monetary policy may be at a “turning point” as the world’s largest economy rebounds.
“We’ve seen some disappointing data this week, so the market is a bit on edge.” said John Plassard, director at Louis Capital Markets SA in Geneva. “Investors will follow the report on U.S. home sales with interest as they try to gauge the housing market’s recovery.”
Three stocks fell for every two that advanced in the Stoxx 600 (SXXP). BT Group Plc rallied 6 percent, the most since October, after saying it plans to pay down about half of its 4.1 billion- pound ($6.5 billion) pension deficit by the end of the month, allowing the U.K.’s largest fixed-line phone company to consider a higher dividend.
Nike Climbs
The S&P 500 is poised for its biggest weekly decline since Dec. 16. Nike Inc. rose 2.8 percent in German trading as third- quarter profit at the world’s largest sporting-goods maker topped analysts’ estimates. Accenture Plc climbed 2.1 percent as the second-biggest technology-consulting company raised its full-year earnings forecast to above the average analyst projection.
Even after this week’s declines, stocks worldwide are off to the best start of a year since 1998. The MSCI All-Country World Index has lost 1.5 percent for the week, paring this year’s gain to 11 percent.
The MSCI Emerging Markets Index (MXEF) slipped less than 0.1 percent. The Shanghai Composite Index (SHCOMP) dropped 1.1 percent as the third-biggest Chinese bank reported lower profit. India’s Sensex (SENSEX) Index climbed 1 percent as overseas investors continued buying local shares at a record rate and Goldman Sachs Group Inc. upgraded the nation’s shares to market weight from underweight.
The S&P GSCI (SPGSCI) gauge of 24 commodities gained 0.7 percent, bringing the increase this quarter to 8.6 percent after a 9.1 percent advance in the fourth quarter. Gasoline rose 0.4 percent to $3.3541 a gallon. Soybeans jumped 1.2 percent to $13.655 a bushel.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
