Stocks (MXWD) and commodities rose to the highest levels in six months on speculation the U.S. is growing with little inflation. The cost of insuring European debt fell the most in two weeks on optimism Greece will get a bailout.
The MSCI All-Country World Index (MXWD) gained 0.5 percent at 9:20 a.m. in London, on course for the highest close since Aug. 1. Standard & Poor’s 500 Index futures slipped less than 0.1 percent after the U.S. gauge rose 1.1 percent yesterday. The S&P GSCI index of 24 commodities climbed 0.3 percent and oil in New York rose above $102 a barrel for a third day. The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments fell eight basis points to 340.
A gauge of U.S. leading indicators probably improved for a fourth month in January as the cost of living increased 0.3 percent, economists said before reports today. European governments are considering cutting interest rates on emergency loans to Greece and using contributions from the European Central Bank to plug a new financing gap in the second Greek bailout, two people familiar with the talks said yesterday.
“When there’s a bit of relief from the European front, the markets can focus on fundamentals, which seem to be improving by the day,” said Prasad Patkar, who helps manage about $1 billion at Platypus Asset Management Ltd. in Sydney.
The Stoxx 600 advanced 0.4 percent to the highest since Aug. 1. Aker Solutions ASA (AKSO) surged 16 percent as Norway’s biggest oil-platform maker reported net income that topped estimates. Lafarge SA jumped 4.9 percent after the world’s largest cement maker posted better-than-expected operating profit and unveiled a 400 million-euro ($525 million) cost-cutting plan.
Baidu Profit
The S&P 500 climbed to the highest level since May yesterday. Baidu Inc., the owner of China’s dominant search engine, advanced 1.3 percent in European trading after reporting fourth-quarter profit that topped analysts’ predictions.
The euro swung between gains and losses against the dollar, trading little changed at $1.3124, set for a weekly decline. The New Zealand dollar strengthened 0.3 percent against its U.S. counterpart and climbed 0.5 percent versus the yen.
The yield on the Spanish 10-year bond declined six basis points to 5.27 percent.
The GSCI commodities gauge jumped as much as 0.5 percent to the highest since Aug. 1. Oil in New York climbed 0.3 percent to $102.66 a barrel and copper advanced 0.6 percent to $8,348.50 a metric ton. The U.S. is the world’s biggest oil consumer and second-biggest buyer of copper.
The MSCI Emerging Markets Index (MXEF) gained 1.1 percent, extending this week’s advance to 1.8 percent. The Philippine Stock Exchange Index (PCOMP) jumped 2.4 percent to a record. The Hang Seng China Enterprises Index (HSCEI) of Chinese companies listed in Hong Kong rose 1.2 percent to the highest level since Aug. 4. The BUX Index (BUX) added 1.7 percent in Budapest and benchmark gauged gained at least 0.6 percent in Turkey, India and South Africa.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net
