BLBG:Most Europe Stocks Rise as Metals Gain on China, Earnings
Most European stocks rose and metals advanced as China’s trade beat estimates and earnings from ING Groep NV and to Deutsche Telekom AG topped projections. New Zealand’s dollar weakened while the won strengthened to a two-month high as officials sought to limit currency gains.
The Stoxx Europe 600 Index added less than 0.1 percent at 9:50 a.m. in London, the MSCI Asia Pacific Index advanced 0.9 percent and Standard & Poor’s 500 Index futures slipped less than 0.1 percent. Copper rallied 0.8 percent, aluminum gained 1.2 percent and lead increased 1.3 percent. The so-called kiwi dropped at least 0.5 percent against all of its 16 major peers. South Korea’s won climbed 0.5 percent versus the dollar.
China’s export and import growth unexpectedly accelerated in April even as economists expressed skepticism over the data and shipments to the U.S. and Europe fell. A report today may show German industrial production shrank 0.1 percent in March after expanding 0.5 percent in February. Reserve Bank Governor Graeme Wheeler said the bank sold the kiwi to protect the economy while gains in the won prompted a director in South Korea’s finance ministry to say the government will monitor “unnecessary movement” that increases volatility.
“The Chinese trade data are the first sign in a while that the economy is doing better, and they are importing and exporting more commodities,” Pengjiang “Richard” Fu, director for Asian commodities trading at Newedge Group SA in London, said by e-mail today. “The Chinese economic figures have not been satisfactory for most of this year, so any change will have a positive reaction in commodities including metals prices.”
Earnings Beat
Two shares advanced for each one that fell in the Stoxx 600. ING (INGA), the biggest Dutch financial-services company, and Deutsche Telekom, Germany’s largest phone company, climbed more than 2.5 percent. Standard Chartered Plc slid 5.2 percent after the bank said operating profit in the first quarter declined “slightly.”
The decline in S&P 500 futures indicated the U.S. gauge will retreat from a record. Whole Foods Market Inc., the largest natural-goods grocer in the U.S., rallied 7.2 percent in German trading after boosting its earnings forecast.
The MSCI Emerging Markets Index gained for a fourth day, adding 0.7 percent. The Hang Seng China Enterprises Index of mainland companies rose 1.6 percent and the Shanghai Composite Index (SHCOMP) added 0.5 percent. Taiwan’s Taiex climbed 1.3 percent.
Chinese exports surged 14.7 percent in April and imports advanced 16.8 percent last month, while the trade surplus was a higher-than-projected $18.2 billion, data from the General Administration of Customs showed.
Metals Rally
Copper climbed to $7,326 a metric ton, aluminum rose to $1,905 a ton and lead advanced to $2,054 a ton. China is the biggest buyer of industrial metals. Brent crude dropped 0.1 percent to $104.25 a barrel.
The kiwi surged 4.3 percent this year, the strongest gain among the 10 currencies tracked by Bloomberg Correlation- Weighted Indexes. Sweden’s krona advanced 2.2 percent. The dollar gained 2.7 percent and the yen dropped 11 percent.
The euro climbed 0.2 percent today to $1.3104 and was little changed at 129.57 yen. Japan’s currency traded at 98.87 against its U.S. counterpart.
Treasuries were little changed, with the 10-year yield at 1.78 percent, before an auction of $24 billion of the securities.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Jae Hur in Tokyo at jhur1@bloomberg.net;
To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net
