BLBG:Copper Leads Metals Higher as European Stocks Fluctuate
Metals climbed, led by copper’s longest rally in two months, on rising corporate profits and speculation that housing data will show faster U.S. growth. European stocks and U.S. futures swung between gains and losses while the yen strengthened and Portugal’s bonds advanced.
The Standard & Poor’s GSCI Index (SPGSCI) of 24 raw materials added 0.3 percent at 12:17 p.m. in London. Copper increased 1.2 percent and silver surged 2.4 percent. The Stoxx Europe 600 index fell less than 0.1 percent while futures on the Standard & Poor’s 500 Index rose 0.1 percent after the gauge closed at a record July 19. Portugal’s bonds climbed as the president ruled out early elections. The yen strengthened 0.4 percent against the dollar after Japan’s ruling party failed to win a majority.
Home sales probably increased in June to the highest level since November 2009. Companies from Apple Inc. (AAPL) to Ford Motor Co. are set to post earnings in the U.S. this week, after more than 70 percent of S&P 500 members that have reported second-quarter results topped analyst estimates, data compiled by Bloomberg show. Abe’s failure to win a single-party majority in upper-house elections boosted speculation he will find it harder to push through reforms.
“If there’s an indication we’re starting to see positive surprises in manufacturing data, that will bode well for industrial metals,” said Angus Staines, a commodities analyst at UBS (UBSN) AG in London. “It implies the metal intensity of the U.S. recovery is improving.”
Combined purchases of existing and new houses increased to a 5.74 million annualized pace last month, according to the median forecasts of economists in a Bloomberg survey.
Home Sales
Sales of previously owned homes rose to 5.26 million in June from 5.18 million the prior month, according to the median forecast of economists surveyed before the National Association of Realtors’ report today. On July 24, Commerce Department data will show purchases of new homes increased to a 484,000 pace last month, the highest level since June 2008, according to a separate Bloomberg survey.
U.S. durable goods orders placed with U.S. factories probably increased for a third month in June, pointing to a rebound in manufacturing, according to a Bloomberg survey. The Commerce Department reports the data on July 25.
Copper rose for a third day, the longest streak since May 20, to $6,997 a metric ton and silver climbed to $19.94 an ounce. Gold advanced 1.9 percent to $1,318.40 an ounce. West Texas Intermediate oil gained 0.4 percent to $108.52 a barrel, higher than the Brent crude price of $108.36 a barrel.
European Stocks
UBS advanced 2.8 percent as Switzerland’s largest bank reported an increase in second-quarter profit and said it reached an agreement in principle with the U.S. Federal Housing Finance Agency to settle claims related to residential mortgage-backed securities offerings between 2004 and 2007. Royal Philips Electronics NV climbed 3.6 percent in Amsterdam trading after second-quarter earnings jumped 30 percent.
Mobistar SA (MOBB) plunged 29 percent, the most ever, after Belgium’s second-biggest mobile-phone company cut its forecasts. Belgacom SA, the nation’s largest phone company, tumbled 6.3 percent to the lowest price since its 2004 initial public offering.
The volume of shares changing hands in Stoxx 600 companies was 25 percent less than the 30-day average today, according to data compiled by Bloomberg.
The S&P 500 increased 0.7 percent last week, closing at an all-time high. About 53 percent of S&P 500 companies that have reported second-quarter results have beaten revenue projections, data compiled by Bloomberg show.
Halliburton Profit
Halliburton Co. (HAL) advanced 1.6 percent in pre-market New York trading as the world’s largest provider of hydraulic-fracturing services reported profit that beat estimates.
General Electric Co. (GE) surged 4.6 percent July 19, the highest price since 2008, after saying its order backlog reached a record amid demand for jet engines and drilling equipment. The company reported adjusted profit from continuing operations of 36 U.S. cents a share, exceeding the 35-cent average analyst estimate compiled by Bloomberg.
Google Inc. (GOOG), owner of the world’s most-used search engine, dropped 1.6 percent July 19 as mobile advertising crimped average prices. Microsoft Corp. plunged 11 percent, the most since 2009, after second-quarter earnings missed projections by the biggest margin in at least a decade as demand weakens for personal computers running its Windows operating system.
Japanese shares advanced as Abe’s Liberal Democratic Party and its New Komeito ally secured a majority of at least 135 seats in the upper house, according to estimates by state broadcaster NHK. The LDP has controlled the lower house since elections in December.
Japanese Shares
Japan’s Nikkei 225 Stock Average rose 0.5 percent and the Topix Index was up 0.4 percent.
The yen strengthened 0.4 percent to 131.73 per euro, after weakening in the previous three trading days. The 17-nation shared currency added 0.3 percent to $1.3178. The Bloomberg Dollar Index fell 0.3 percent.
Portugal’s 10-year bond yield fell 48 basis points to 6.32 percent, the lowest since June 20. The two-year note yield declined 29 basis points to 4.81 percent.
Portuguese President Anibal Cavaco Silva said the government of Prime Minister Pedro Passos Coelho would stay in office until its term ends in 2015 and reaffirmed he doesn’t want to call early elections. He made the comments after ruling coalition parties and the main opposition Socialists were unable to agree on measures to complete a European Union-led bailout plan after six days of talks.
Italy’s 10-year bond yield fell seven basis points to 4.34 percent and Spain’s dropped five basis points, to 4.62 percent.
Emerging Markets
The MSCI Emerging Markets Index rose for the first time in three days, adding 0.1 percent. The Shanghai Composite Index gained 0.6 percent. The Hang Seng China Enterprises Index of mainland shares listed in Hong Kong fell 0.4 percent as banks declined after China removed a floor on lending rates. Russia’s Micex Index gained 0.2 percent.
The cost of insuring against losses on corporate bonds fell for a fourth day, with the Markit iTraxx Europe index of credit-default swaps linked to 125 investment grade companies falling to 99.6, the lowest since May 28.
To contact the reporter on this story: Rob Verdonck in London at rverdonck@bloomberg.net
To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net
