May 28, 2011 01:18 AM By Stephen Kirkland, Rita Nazareth Bloomberg LONDON: Stocks rose, preventing the fourth straight weekly loss for the MSCI All-Country World Index, and commodities gained after Group of Eight leaders said the global economy is strengthening. The dollar fell.The MSCI index added 1.1 percent at 11:56 a.m. in New York, giving the gauge a 0.4 percent advance since May 20. The Standard & Poor’s 500 Index climbed 0.6 percent. The S&P GSCI index of 24 commodities increased 0.5 percent as natural gas, sugar and lead surged 1.4 percent or more. The dollar slid against 16 major peers. The Swiss franc rose to records against the euro, pound and U.S. currency. The strengthening world economy will pave the way for reductions in debt, G-8 leaders said. Europe vowed to fight its fiscal woes with “determination,” while President Barack Obama promised a “clear and credible” U.S. deficit-reduction strategy. Equities gained even after consumer spending in the U.S. climbed less than forecast and sales of previously owned American homes plunged 12 times more than projected. “The world is healing economically,” said Philip Orlando, the New York-based chief equity market strategist at Federated Investors Inc., which oversees $358.2 billion. “I’m delighted to see the G-8 take a longer-term view of things, especially because some investors have been focused on the near term.” Raw-material, financial and energy companies in the MSCI World Index of shares in developed nations climbed at least 0.7 percent, leading gains in the measure. In the MSCI Emerging Markets Index, energy shares added 1.6 percent and consumer companies reliant on discretionary spending added 1 percent. In the U.S., Marvell Technology Group Ltd., the maker of chips for personal computers and mobile phones, surged 10 percent after projecting higher sales than analysts estimated. U.S. stocks briefly pared gains after the number of Americans signing contracts to buy previously owned homes plunged 12 times more than forecast in April. The Stoxx Europe 600 Index climbed 0.7 percent. Barclays Plc advanced 1.5 percent and BNP Paribas SA of France rallied 2.3 percent after Citigroup Inc. recommended buying shares in European banks. The MSCI Emerging Markets Index advanced 1.3 percent, heading for the highest closing level in two weeks. Russia’s Micex Index gained 2 percent as OAO Gazprom climbed. The Shanghai Composite Index lost 1 percent, extending the biggest weekly drop in 11 months, on concern inflation will accelerate. Turkey’s ISE National 100 Index fell 2.1 percent after JPMorgan Chase & Co. cut its rating on the market to “underweight” from “overweight,” citing a growing current-account deficit and reduced profit forecasts for banks. Gold futures rose to a three-week high as the dollar’s slump spurred demand for commodities. The metal climbed as much as 1 percent to $1,539.50 an ounce. Copper rose to a three-week high in New York as increased premiums signaled stronger demand in China and Standard Chartered Plc predicted price gains, joining banks including Goldman Sachs Group Inc. The Dollar Index dropped 0.8 percent, paring its first monthly advance since November. The euro strengthened 1 percent to $1.428, while the Swiss franc climbed 1.5 percent against the dollar. A version of this article appeared in the print edition of The Daily Star on May 28, 2011, on page 5. Read more: http://www.dailystar.com.lb/Business/International/2011/May-28/G-8-statement-on-global-growth-sees-stocks-and-commodities-rise.ashx#ixzz1Nq2XgFyH (The Daily Star :: Lebanon News :: http://www.dailystar.com.lb)

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