BLBG:Copper Leads Metals Higher as Dollar Falls Before U.S. Jobs Data
Copper led metals higher and the dollar weakened as investors awaited the release of U.S. jobs data. European stocks were little changed as companies from Adidas AG (ADS) to BNP Paribas SA reported earnings.
Copper for three-month delivery rallied 2.6 percent as of 8:13 a.m. in London and aluminum advanced 1.6 percent. The Stoxx Europe 600 Index added 0.1 percent, while Standard & Poor’s 500 Index futures were little changed, after the gauge closed at a record high. The greenback dropped against most of its major peers and lost 0.3 percent versus the euro. The yield on Spanish 10-year bonds fell eight basis points to below 4 percent for the first time since 2010.
Data today may show U.S. employers hired more workers in April than in the prior month, according to a Bloomberg poll of economists. Other U.S. figures today are projected to show a decline in March factory orders and service industries expanded last month at the slowest pace since July. The Reserve Bank of India cut its key interest rate by 25 basis points today, a day after the European Central Bank lowered borrowing costs.
“Monetary easing by key countries is likely to boost risk appetite,” said Heo Pil Seok, chief executive officer at Midas International Asset Management Ltd., which oversees about $5.3 billion in Seoul. “While the global economy is still showing mixed readings, I think abundant money supply will benefit riskier assets.”
Employment figures to be released by the Labor Department at 8:30 a.m. in Washington may show payrolls increased by 140,000 workers after an 88,000 gain in March, according to the median forecast of economists surveyed by Bloomberg. The jobless rate stayed at 7.6 percent, matching the lowest since December 2008, the survey showed.
Copper, Gold
Also in the U.S. today, the Institute for Supply Management will release its non-manufacturing index. Economists forecast the gauge was little changed at 54 in April from 54.4 a month earlier. Readings greater than 50 signal expansion. A Commerce Department report is projected to show a 2.9 percent decline in March factory orders, the most since August, as demand slumped for commercial aircraft and business equipment.
Copper trimmed a weekly decline. The metal has lost 15 percent since this year’s peak on Feb. 4 on concern economic growth may falter in China, the largest user. Zinc gained 1.8 percent and nickel increased 1.6 percent. Gold gained 0.6 percent to $1,475.65 an ounce.
Natural gas futures dropped 0.5 percent, extend a 7 percent plunge yesterday, when a government report showed that U.S. stockpiles expanded by more than forecast.
Adidas Profit
BNP Paribas (BNP), France’s largest bank, gained 1.2 percent after first-quarter profit fell 45 percent to 1.58 billion euros ($2.06 billion), beating the 1.34 billion-euro average estimate of analysts surveyed. Adidas jumped 5.3 percent after net income climbed 6.5 percent to 308 million euros, topping the 298.5 million-euro average estimate.
In Sydney, Macquarie Group Ltd. (MQG), Australia’s biggest investment bank, jumped the most since June 2009 after posting a 17 percent gain in full-year profit.
The yield on Spanish 10-year bonds fell to 3.96 percent, while the two-year note yield dropped six basis points to less than 1.5 percent. The yield on Italian two-year notes fell as much as five basis points to 0.974 percent, the lowest since Bloomberg started tracking the data in 1993.
Bond funds lured record-high inflows of $10.3 billion for week to May 1, Citigroup Inc. said in a report today, citing EPFR Global.
Investment Grade
The MSCI Asia Pacific excluding Japan Index gained 0.1 percent, taking its weekly advance to 1 percent. Japan’s markets were shut today for a holiday. The Shanghai Composite Index (SHCOMP) rallied 1.4 percent from a four-month low. The Philippine Stock Exchange Index (PCOMP) jumped 1.7 percent to a record after Standard & Poor’s awarded the country an investment-grade credit rating. The FTSE Bursa Malaysia KLCI Index slid 1.3 percent before general elections on May 5.
Thailand’s baht dropped as much as 0.9 percent to 29.72 per dollar, the weakest level since March 18, on speculation the central bank will take steps to limit gains in Asia’s best- performing currency of 2013. Bank of Thailand Chairman Virabongsa Ramangkura said yesterday currency appreciation has affected exports and the Thai economy.
To contact the reporter on this story: Richard Frost in Hong Kong at rfrost4@bloomberg.net; Saeromi Shin in Seoul at sshin15@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net
