BLBG:Commodities Gain on China as S&P 500 Futures Advance
Commodities gained after China’s exports topped estimates and investors speculated Japan will expand stimulus. The euro strengthened and Spanish bonds climbed after the country sold more debt than targeted at its first auction this year.
The Standard & Poor’s GSCI gauge of 24 commodities advanced 0.8 percent at 10 a.m. in London, with aluminum climbing 1.4 percent and oil rising 1.2 percent. S&P 500 Index futures added 0.4 percent and the Stoxx Europe 600 Index rose 0.1 percent. The euro gained 0.2 percent to $1.3092 and the yield on Spain’s two- year notes fell 18 basis points to 2.21 percent. U.K. 10-year inflation-linked gilts yields dropped to a record after a decision to leave retail-price index calculations unchanged.
China’s overseas sales rose 14.1 percent in December from a year earlier, almost triple the 5 percent gain predicted in a Bloomberg analyst survey, data showed today. Spain sold 5.8 billion euros ($7.6 billion) of bonds, more than the maximum target of 5 billion euros. Japan is considering new measures to stabilize the currency market using a special account in its foreign-exchange fund, according to a draft of proposals obtained by Bloomberg News.
“China is back on the growth path and the imports of industrial metals will continue to remain strong,” said Eugen Weinberg, the head of commodity research at Commerzbank AG in Frankfurt. “Copper is likely to remain in focus.”
Copper Climbs
The S&P GSCI advanced to the highest since Jan. 2 with copper climbing 0.9 percent. China is the world’s biggest user of industrial metals and energy. Tin rallied 0.2 percent to the highest since Feb. 16, and West Texas Intermediate oil jumped to $94.17 a barrel.
The Stoxx 600 was little changed after rising yesterday to a 22-month high. Marks & Spencer Plc slid 4.5 percent after the U.K.’s largest clothing retailer posted quarterly sales that missed analysts’ estimates. The company said it offered fewer promotions over the Christmas holiday than a year earlier. Tesco Plc gained 2.3 percent after reporting its strongest sales growth since 2010.
MAN SE jumped 4.6 percent as Volkswagen AG offered to take full control of the German truckmaker. Europe’s largest carmaker already holds 75.03 percent of MAN’s voting rights.
S&P 500 futures rose, indicating the equity benchmark will climb for a second day. A Labor Department report at 8:30 a.m. in Washington will show that initial jobless claims declined last week, according to the average economist estimate in a Bloomberg News survey.
Euro Gains
The euro gained against 11 of its 16 major counterparts, advancing 0.6 percent versus the yen. Japan’s currency slipped 0.3 percent against the dollar.
The European Central Bank will probably keep its main refinancing rate unchanged at a meeting today, according to a Bloomberg survey
Europe’s junk bond market opened for the year with Fresenius SE & Co., the German medical equipment maker, and French facilities service provider La Financiere Atalian offering new issues. The deals will help push this week’s total debt sales to more than 13 billion euros ($17 billion), according to data compiled by Bloomberg.
The MSCI Emerging Markets Index (MXEF) added 0.4 percent, snapping a three-day decline. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong rose 1 percent. South Korea’s Kospi index jumped 0.8 percent and Taiwan’s Taiex added 0.9 percent. Benchmark gauges in India and Russia slipped less than 0.1 percent.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net;
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
