BLBG: U.S. Oil Approaching $50 Boosts Stocks as Emerging Markets Surge
Malaysian ringgit soars most in 17 years as global stocks jump
S&P futures signal gauge may rise sixth day out of past seven
Stocks rose around the world as U.S. oil approached $50 a barrel for the first time since July, spurring gains by emerging markets and the currencies of commodity-producing nations.
The MSCI All Country World Index advanced for the sixth-consecutive day in the longest run of gains since April, and Standard & Poor’s 500 Index futures signaled the benchmark may climb. Crude rose for the fourth session, boosting energy producers and miners, even as the prospect of rising fuel prices dented the shares of airlines. The ringgit and the rupiah led an index of 20 emerging-market currencies to a seven-week high, while Treasuries declined.
“Oil is like a coiled spring -- it was under excessive pressure for so long, now that’s being released,” said Eugen Weinberg, head of commodities research at Commerzbank AG in Frankfurt. “Risk appetite is increasing across markets, which were overly bearish before.”
Stocks, commodities and emerging markets have surged since the end of the third quarter as speculation builds the Federal Reserve will hold off raising interest rates this year to shield the economy. Oil is also rallying amid signs a U.S. glut may be easing, while global demand for crude grows.
The MSCI All Country World Index jumped 0.6 percent by 7:18 a.m. in New York. S&P 500 E-mini futures expiring in December climbed 0.6 percent. West Texas Intermediate crude surged as much as 2.4 percent to $49.71 a barrel, and was last at $49.55, leaving it about 7 percent lower this year.
Stocks
The Stoxx Europe 600 Index increased 0.6 percent, with European miners and energy producers rising for the seventh day and oil companies heading for their biggest gain in the period since 2008. Morgan Stanley raised its rating on commodity firms, giving the equivalent of a buy to Rio Tinto Group and BHP Billiton Ltd.
SABMiller Plc gained 1.1 percent and Anheuser-Busch InBev NV climbed 2 percent. The Budweiser maker raised its offer for the U.K. company to 68.2 billion pounds ($104 billion), seeking to combine the world’s two largest brewers after two earlier bids were rejected. SABMiller said the proposal undervalues the company “very substantially.”
Airlines fell amid higher oil prices. EasyJet Plc slid 3.9 percent and Deutsche Lufthansa AG dropped 1.8 percent.
Commodities
Oil was on course for its longest rally since April after industry data showed an unexpected drop in U.S. crude stockpiles last week. Inventories fell by 1.2 million barrels in the period, the American Petroleum Institute was said to have reported, before government data Wednesday that’s estimated to show a drop of 2.3 million. The Department of Energy also increased its forecast for 2015 global oil demand.
Copper climbed as much as 1.5 percent to a more than two-week high of $5,264 a metric ton as investors weighed the impact of supply cuts on the global market.
Emerging Markets
The MSCI Emerging Markets Index added 2.5 percent, poised for the highest closing level since Aug. 17, led by energy and technology stocks. The gauge is on course for the steepest six-day rally since December 2011. Malaysia’s ringgit and the Indonesia’s rupiah surged.
Samsung Electronics Co.’s had its biggest advance in more than six years, climbing 8.7 percent.
Hong Kong’s Hang Seng China Enterprises Index climbed 4.7 percent to a more than six-week high as PetroChina Co. surged. Mainland markets open tomorrow after a week-long holiday.
The ringgit climbed 3.5 percent, the most since 1998, after Malaysia reported its biggest trade surplus in nine months and Brent crude extended gains. Stocks rose to a two-month high. Indonesia’s rupiah appreciated 3.1 percent, and the ruble also gained.
