BLBG:Stocks, Oil Decline On U.S. Data As Indian Rupee Slumps
European stocks fell for a second day and metals declined as a drop in German business confidence provided the latest evidence the global economy is slowing. U.S. equity index futures rose, signalling Standard & Poor’s 500 Index will rebound from its second-biggest drop this year.
The Stoxx Europe 600 Index (SXXP) declined 0.6 percent at 10:15 a.m. in London, while the MSCI Emerging Markets Index tumbled 1.6 percent. S&P 500 futures gained 0.4 percent, following a 2.2 percent slide on the gauge yesterday. India’s rupee weakened 1.6 percent to a record. The yield on the Spanish 10-year bond rose eight basis points to 6.69 percent. Copper dropped to the lowest price in six months.
German business confidence fell to a two-year low, the Munich-based Ifo institute said today after data yesterday showed that U.S. manufacturing shrank and home sales declined. Moody’s Investors Service cut ratings for Credit Suisse Group AG (CSGN) and 14 other banks, while the International Monetary Fund said Europe’s crisis has reached a “critical stage.”
“Things are still getting worse,” said Peter Elston, Singapore-based head of Asia-Pacific strategy at Aberdeen Asset Management Plc, which oversees about $270 billion. “When you have an essentially weak private sector, you’re relying on the government to step in and support things. You’re seeing a gradual weakening of the ability of governments to step in.”
Credit Suisse Falls
Three shares dropped for every one that rose on the Stoxx 600 as a gauge of chemical makers posted the biggest drop of the 19 industries in the equity benchmark. Solvay SA (SOLB) sank 5.4 percent after Citigroup Inc. recommended selling the shares, citing falling prices and demand for the Belgian company’s products. Clariant AG, the world’s largest maker of printing-ink chemicals, lost 3.1 percent. Lanxess AG slid 4.1 percent.
Credit Suisse retreated 1.8 percent after the credit rating of Switzerland’s second-biggest lender was cut three levels by Moody’s.
U.S. futures rose, indicating the S&P 500 Index will pare this week’s 1.3 percent drop. The yield on the 10-year Treasury rose one basis point to 1.63 percent.
Italy’s 10-year bond yield climbed nine basis points to 5.84 percent, with the equivalent-maturity German bund yield two basis points lower. That left the difference in yield, or spread, between the securities nine basis points higher at 430 basis points, or 4.30 percentage points.
The pound climbed 0.2 percent to $1.5629 and strengthened 0.2 percent versus the euro. The euro gained 0.1 percent to $1.2553.
Metals Drop
Copper fell as much as 1.7 percent to $7,219.50 a metric ton, the lowest price since Dec. 19. Oil rose 0.4 percent to $78.60 a barrel in New York after falling to $77.56, the lowest since Oct. 5. Zinc and lead also slipped to the lowest prices since October.
The MSCI Emerging Markets Index (MXEF) retreated 1.6 percent, erasing this week’s gains. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies listed in Hong Kong fell 1.7 percent and the BSE India Sensitive (SENSEX) Index slid 1.2 percent. Russia’s Micex Index sank 0.8 percent and the ruble tumbled 1.2 percent against the dollar, the most in two weeks.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Jason Clenfield in Tokyo at jclenfield@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net
