BLBG:Stocks End Five-Day Fall as Oil, Copper Producers Lead Rally; Dollar Slips
Stocks advanced for the first time in six days, led by commodity producers as raw materials rebounded. The Dollar Index fell for a third day.
The MSCI All-Country World Index rallied 0.5 percent at 6 a.m. in New York, snapping the longest losing streak since November. Standard & Poor’s 500 Index futures rose 0.2 percent. The S&P GSCI index of 24 commodities increased 1.1 percent, led by oil and copper. The Dollar Index fell 0.1 percent. The pound weakened 0.5 percent against the euro. Portugal’s 10-year bond yield climbed five basis points after a sale of bills.
Raw materials will extend their rebound from the record plunge in 2008 as an advance in oil and gold helps to compensate for a retreat in base metal prices, Ray Eyles, chief executive officer of JPMorgan Chase & Co.’s commodities business in Asia, said in an interview. Dell Inc. (DELL) yesterday reported profit beat estimates as its emphasis on business customers helped withstand a slump in customer demand.
“Present share prices are attractive because of the recent decline,” said Jonathan Ravelas, chief market strategist at Manila-based Banco de Oro Unibank Inc. “It’s good time to bargain hunt stocks, which will show resilient earnings.”
The gain in S&P 500 futures indicated the benchmark gauge for U.S. equities will rebound from a four-week low. Target Corp., the second-largest U.S. discount retailer, and Deere & Co., the world’s biggest maker of farm equipment, are among companies due to report earnings today.
Rio Tinto, Land
The Stoxx Europe 600 Index climbed 0.3 percent, ending a four-day slide. Rio Tinto Group advanced 1.6 percent, leading gains among mining companies. Land Securities Group Plc (LAND), the U.K.’s largest real-estate investment trust, surged 6.7 percent, the most in almost two years, as profit topped estimates. Rivals British Land Co. and Hammerson Plc rallied at least 4 percent.
The MSCI Emerging Markets Index added 0.9 percent, set for its steepest gain since April 21, after yesterday closing at the lowest level since March 23. Russia’s Micex Index jumped 1.1 percent and Poland’s WIG20 Index rallied 1 percent, buoyed by higher oil and metals prices. South Korea’s Kospi Index (KOSPI) jumped 1.6 percent as carmakers surged on speculation of higher sales.
The GSCI commodities index rebounded after falling 1.6 percent the past two days. Oil rose 1.3 percent to $98.11 a barrel. Gasoline supplies last week fell by 676,000 barrels, the American Petroleum Institute said yesterday. Wheat climbed 1.1 percent, corn advanced 0.9 percent and cotton increased 1.5 percent as U.S. dry weather may curb supplies.
Dollar, Pound
The dollar depreciated 0.5 percent against the euro, and slid 0.4 percent versus the yen. Sterling declined against all 16 of its most-traded peers after minutes from the Bank of England meeting this month showed policy makers voted 6-3 to keep interest rates on hold this month as the majority warned that tightening policy now could damp consumer spending.
The New Zealand dollar strengthened 1.1 percent against its U.S. counterpart as reports showed producer prices and consumer confidence in the nation increased. Sweden’s krona appreciated versus its most-traded counterparts after the National Debt Office said that the country will have a larger budget surplus than previously forecast this year because of state-asset sales and as the economy continues to recover.
The yield on the 10-year German bund rose two basis points. The extra yield investors demand to hold 10-year Portuguese securities instead of benchmark German bunds, the region’s benchmark government securities, increased four basis points. Portugal sold 1 billion euros ($1.43 billion) of two-month bills at an average yield of 4.657 percent, the country’s debt management agency said. The auction attracted bids for 2.1 times the amount offered.
The cost of insuring sovereign debt against default rose for a second day, with the Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments climbing three basis points to 181.
The 10-year U.S. Treasury yield was little changed at 3.11 percent.
To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net.
To contact the editor responsible for this story: Paul Sillitoe at psillitoe@bloomberg.net
