SF: Euro Rise as Greek Bailout Nears; Copper, Oil Advance
April 30 (Bloomberg) -- Stocks rose, led by Greece, and the euro strengthened on speculation European aid for the debt- stricken nation is imminent. Crude oil exceeded $86 a barrel and copper advanced.
The Stoxx Europe 600 Index rose 0.3 percent at 10:13 a.m. in London and futures on the Standard & Poor's 500 Index gained 0.1 percent. Greece's ASE Index climbed for a third day. The cost of credit-default swaps to protect against Greece reneging on its debt agreements fell 49 basis points to 621, after jumping to a record this week, according to CMA DataVision prices. Oil surpassed $86 for the first time in two weeks and copper rose for the first time in four days.
European Commission President Jose Barroso said today that he is confident a rescue package for the Greek government will be completed "in days," easing investor concern that the nation may default. The U.S. economy probably expanded in the first quarter, capping the biggest six-month gain since 2003, as consumers spent more freely, economists said before a government report today.
"The underlying equity story remains strong," Michael Hartnett, the chief global equity strategist at Bank of America- Merrill Lynch wrote in a report today. "Although both the sovereign debt crisis in Europe and policy tightening in China have dominated headlines, much of the market has shrugged off these macro worries. The macro environment is still equity- supportive."
Banking Revenue
The MSCI World Index of 23 developed nations' stocks rose 0.4 percent. National Bank of Greece SA, the nation's largest lender, rallied 8.8 percent in Athens, extending yesterday's 18 percent surge. Banco Comercial Portugues SA climbed 4.4 percent in Lisbon as the PSI-20 Index gained 2 percent. Banco Santander SA advanced 2.6 percent in Madrid. Gains were limited as Barclays Plc, the U.K.'s third-biggest bank by assets, slumped 4.5 percent in London after investment banking revenue dropped more than forecast.
The MSCI Asia Pacific Index climbed 1 percent, its first gain in four days. Samsung Electronics Co. Ltd. added 2.9 percent in Seoul after reporting record net income. Baoshan Iron & Steel Co. Ltd., China's largest publicly traded steelmaker, gained 6 percent in Shanghai after saying its profit may surge 10-fold. Macquarie Group Ltd., Australia's largest investment bank, rose 4 percent as earnings doubled.
The MSCI Emerging Markets Index climbed 0.8 percent, led by a 1.6 percent jump in Poland's benchmark WIG20 Index as insurer PZU SA raised 8.1 billion-zloty ($2.7 billion) in Europe's biggest initial public offering since 2007. Emerging-market equity funds attracted $1.5 billion of net inflows in a week, taking year-to-date gains to $15.2 billion, EPFR Global said.
U.S. Futures
The gain in U.S. futures indicated the S&P 500 may extend its biggest rally in almost two months. First-quarter gross domestic product growth may show a 3.3 percent expansion, according to a Bloomberg survey of 85 economists before a report from the Commerce Department due at 8:30 a.m. in Washington.
About 82 percent of companies in the S&P 500 that reported quarterly results since April 12 beat analysts' estimates for per-share earnings, according to Bloomberg data. Chevron Corp. and Constellation Energy Group Inc. are among companies scheduled to announce results today.
The euro rose for the third consecutive day against the dollar and the yen, climbing 0.5 percent to $1.3292 and 0.6 percent to 125.19 yen. The Japanese currency dropped against all 16 of its most-traded peers, slipping 0.2 percent to 94.19 against the dollar.
Swiss Franc
The Swiss franc was weaker against the euro after central bank Chairman Philipp Hildebrand said policy makers are "acting decisively to prevent an excessive appreciation" of the currency. The franc depreciated as much as 0.1 percent to 1.4356 per euro, before trading at 1.4348.
The yield on the Greek 10-year bond dropped 20 basis points to 9.61 percent, extending yesterday's 69 basis points decline. Credit-default swaps tied to Spain's government bonds fell 9 basis points to 161, Portugal dropped 29 basis points to 269 and Italy declined 8 basis points to 137.5, CMA prices show. A decline in the price of the contracts signals an improvement in investor perceptions of credit quality.
Prime Minister George Papandreou is starting his sales pitch to the Greek people as unions denounce "unjust" budget cuts linked to a potential $159 billion European Union-led bailout. Greek officials aim to reach an agreement with the EU and the International Monetary Fund in coming days on budget cuts that may be worth 24 billion euros ($32 billion).
Crude added as much as 1.1 percent to $86.13 a barrel in New York trading, for a third consecutive advance. Copper for delivery in three months rose 1.1 percent to $7,437 a metric ton on the London Metal Exchange. Aluminum gained for a third day, adding 1.4 percent to $2,230.25 a ton. Nickel, zinc and tin also rose. Gold for immediate delivery jumped as much as 0.8 percent to $1,175.60 an ounce, the highest since December.
--With assistance from Dan Tilles, Stuart Wallace, Gavin Serkin, Paul Armstrong and Adam Haigh in London. Editors: Stuart Wallace, Claudia Carpenter
