Investor confidence in U.S., Chinese economies is improving Raw-materials companies lead gains in European index Share on Facebook Share on Twitter Stocks rose amid growing investor confidence in the U.S. and Chinese economies. Industrial metals rallied, while oil advanced before American inventory data. The Stoxx Europe 600 Index headed for its biggest advance in a week, led by raw-materials companies, amid reduced trading volumes before the year-end holidays. Oil in New York extended gains and traded near parity to Brent. Copper and lead both rose at least 0.8 percent, while Russia’s ruble strengthened and the euro fell after a three-day rally. Investors are looking to reports Wednesday for signals on the strength of the world’s largest economy. U.S. shares climbed on Tuesday after data showed consumer spending buoyed growth in the third quarter, the latest evidence that America is strong enough to weather tighter monetary policy from the Federal Reserve. In China, early indicators in December are showing more signs of stabilization as leaders say they’ll do more to bolster the expansion. “The huge rebound in some oil and basic-material stocks really fuels the rally today and people are buying the laggards of this year.� said Benno Galliker, a trader at Luzerner Kantonalbank AG in Lucerne, Switzerland. “It’s usual for the market to go higher the day before Christmas holidays, and the volumes are very thin so you can easily move the market.� The Stoxx Europe 600 Index added 1.7 percent to 362.90 at 10:32 a.m. in London, as all 19 industry groups advanced. West Texas Intermediate February oil futures rose 0.9 percent to $36.46 per barrel. Stocks Miners and energy shares led gains in Europe, with ArcelorMittal gaining 9.1 percent. Royal Dutch Shell Plc rose 3.6 percent after announcing further cuts in spending. The Stoxx 600 has still declined 5.9 percent this month, on track for its worst December since 2002. The gauge has gained almost 6 percent this year, poised for a fourth straight annual gain. The volume of shares traded on Stoxx 600 companies was almost a third lower than the 30-day average, as the Christmas holiday neared. Some European markets are closed on Thursday, while others have shorter trading days. Most will reopen on Dec. 28, while U.K. markets do so on Dec. 29. Among shares active on corporate news, Adidas AG added 1.7 percent after peer Nike Inc. posted quarterly profit that beat estimates and allayed concern about slowing growth in China. Syngenta AG gained 2 percent after its chairman told Finanz und Wirtschaft the company is in advanced talks with competitors about a possible combination. Standard & Poor’s 500 Index E-mini futures rose 0.2 percent. The equity gauge rose 0.9 percent yesterday, rebounding further from a two-month low, as a rally in commodity shares ignited broader gains. U.S. consumer purchases climbed in November by the most in three months, the latest evidence of resilience that gave the Federal Reserve confidence to increase interest rates last week. Other consumer and sentiment data will be published later Wednesday. Commodities West Texas Intermediate February futures climbed as much as 1.2 percent. On Tuesday it rose to a premium over Brent for the first time since January on speculation the U.S. decision this month to end a 40-year ban on exports may ease the nation’s oversupply. The industry-funded American Petroleum Institute was said to report Tuesday that U.S. crude inventories fell by 3.6 million barrels. The commodity is heading for a second yearly loss on signs a global glut will be prolonged after the Organization of Petroleum Exporting Countries effectively abandoned output limits at a meeting earlier this month. Brent, the benchmark for more than half the world’s crude, is poised to end 2015 with the lowest annual average price in 11 years. Industrial metals rallied, led by increases in zinc, after a report Tuesday showed the U.S. economy expanded faster than estimated, boosting demand in the second-largest metals user. Aluminum climbed to the highest level this month on the London Metal Exchange. The LME index of six industrial metals has fallen 25 percent this year, heading for the biggest drop since 2008. Emerging Markets The MSCI Emerging Markets Index climbed for a third day as energy companies rallied with oil, gaining 0.7 percent, with all industry groups advancing. Equity gauges in Thailand, Malaysia, India and Turkey rose at least 1 percent. The Hang Seng China Enterprises Index of mainland companies surged to the highest close since Dec. 3. China’s earliest indicators of growth for December showed more signs of stabilization as leaders of the world’s second-largest economy signaled they’ll do more to prevent a sharp slowdown. The Shanghai Composite Index fell 0.4 percent. A gauge tracking 20 emerging-market currencies was little changed after a three-day gain. The ruble climbed 0.4 percent. The rupiah strengthened for a fifth day, set for its longest rally since December 2014, after local media Investor Daily reported the nation will cut regulated fuel prices in January. Currencies The euro dropped against all but two of 16 major peers. The common currency slid 0.3 percent to $1.0924, halting a three-day advance. The Bloomberg Dollar Spot index was little changed, still on course for a 0.5 percent drop this month as traders bet the Federal Reserve will wait until at least April to raise interest rates again. Vietnam’s dong declined to the limit of its current trading band for the first time, reflecting further pressure to weaken after three devaluations already this year. The currency diverged from the State Bank of Vietnam’s daily reference rate of 21,890 by the maximum 3 percent that’s permitted. Bonds U.S. 10-year Treasuries were little changed, yielding 2.25 percent. The Securities Industry and Financial Markets Association recommends an early close for U.S. bond markets Thursday and a full closure on Friday for Christmas. The yield on similar-maturity German bonds was at 0.60 percent, while that on U.K. gilts added two basis points to 1.90 percent. The cost of insuring corporate debt fell. The Markit iTraxx Europe Index of credit-default swaps on investment-grade companies dropped two basis points to 80 basis points. A gauge of swaps on non-investment grade companies declined six basis points to 329 basis points. Corporate executives are facing the possibility that debt markets in Europe may never be as good as they were in 2015. Borrowers including Telecom Italia SpA and LafargeHolcim Ltd. bought back about 35 billion euros of their own bonds this year, a record according to data compiled by Citigroup Inc. which tracks all currencies and also includes companies in Russia and former Soviet republics.

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