BLBG:Yen Weakens as Gold Rises While S&P 500 Futures Decline
The yen weakened against all of its major peers after the Japanese economy expanded less than estimated. Gold and silver advanced, while U.S. equity-index futures and European stocks fell.
Japan’s currency declined 0.5 percent to 96.69 per dollar at 9:40 a.m. in London. The Bloomberg Dollar Index rose for the first time in seven days. Gold climbed 1.2 percent and silver jumped 2.2 percent. Standard & Poor’s 500 Index futures slid 0.5 percent and the Stoxx Europe 600 Index retreated 0.3 percent, with volume 29 percent less than the 100-day average. The Shanghai Composite Index gained the most in a month. Germany’s 10-year government bonds fell for the first time in four days.
Gross domestic product in Japan grew an annualized 2.6 percent last quarter, a government report showed, less than the 3.6 percent median projection in a Bloomberg survey of economists. U.S. retail sales probably rose for a fourth consecutive month in July, economists said before a report tomorrow.
“There’s a mixture of yen weakness and the dollar is rebounding,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “There is some disappointment that the Japanese growth rate was below expectations. There’s a chance the BOJ could move to more aggressive easing in the first half of next year.”
The yen weakened 0.3 percent against the euro and 0.2 percent versus the Swiss franc. The Bloomberg Dollar Index rose 0.4 percent as strengthened 0.3 percent against the euro.
Bilfinger Forecast
More than two shares fell for every one that advanced in the Stoxx 600. Ladbrokes Plc fell 2.4 percent as JPMorgan Chase & Co. downgraded its recommendation on the U.K. gambling company. Bilfinger SE rose 2.5 percent after Germany’s second-biggest builder predicted a “significantly” stronger second half.
The drop in S&P 500 futures indicated the U.S. gauge will extend its biggest weekly decline since June. Purchases climbed 0.3 percent after a 0.4 percent advance in June, according to the median forecast of 64 economists surveyed by Bloomberg before Commerce Department figures on Aug. 13.
The MSCI Emerging Markets Index rose for a third day, adding 0.6 percent. The Hang Seng China Enterprises Index advanced 3.4 percent to a two-month high, and the Shanghai Composite Index added 2.4 percent. China’s securities regulator said it will make decisions on financing for real estate projects based on the examination of companies and land ministry assessments, fueling speculation that developers will gain access to equity funding.
Rupee Gains
Turkey’s benchmark index gained 1.1 percent, the most in almost two weeks, after industrial output rose. India’s Sensex jumped 1.3 percent as trading resumed after an Aug. 9 holiday. The rupee rose to a one-week high and government bonds declined after the central bank announced steps to further tighten cash supply to support the currency.
Gold climbed to $1,329.80 an ounce and silver climbed to $20.9925 an ounce. U.S. natural gas advanced 0.7 percent.
Germany’s 10-year yield rose three basis points, or 0.03 percentage point, to 1.71 percent. The rate on similar-maturity U.S. Treasuries climbed one basis point to 2.59 percent.
Spain’s government bonds advanced, pushing 10-year yields down as much as two basis points to 4.47 percent, the lowest level since June 6.
To contact the reporters on this story: Jae Hur in Tokyo at jhur1@bloomberg.net; Stephen Kirkland in London at skirkland@bloomberg.net
To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net
