BLBG:European Stocks, Copper Gain Before U.S. Housing Data
European stocks rose from a three- month low as countries including Spain and the Netherlands sold debt, while copper advanced before data that may show rising U.S. home sales. Australian government bond yields sank to record lows after inflation unexpectedly slowed.
The Stoxx Europe 600 Index (SXXP) appreciated 0.7 percent as of 9:57 a.m. in London while Standard & Poor’s 500 Index futures gained 0.3 percent. The Australian dollar slid 0.3 percent to $1.0285, the country’s 10-year note yield fell nine basis points to 3.68 percent and the euro strengthened 0.1 percent to $1.3167. Copper added 0.7 percent and the cost of insuring against a European sovereign default declined.
Spain sold 1.9 billion euros ($2.5 billion) of bills, while the Netherlands auctioned 2 billion euros of securities as Prime Minister Mark Rutte prepares to address parliament after tendering his Cabinet’s resignation. New-home sales rose 1.6 percent in March, the Commerce Department will say today, according to economists surveyed by Bloomberg. Core consumer prices in Australia gained less than economists forecast last quarter, giving the central bank scope to cut interest rates.
“We can expect a bounce back today after yesterday’s slump, but it may be rather moderate and general sentiment could remain cautious for a while,” said Alessandro Fezzi, a senior market analyst at LGT Capital Management AG in Pfaeffikon, Switzerland. “Markets will remain volatile due to continued insecurities on the political side in Europe.”
TeliaSonera Soars
Seven shares climbed for every one that dropped in the Stoxx 600. TeliaSonera AB (TLSN) jumped 7.7 percent after saying it expects to receive about 22 billion kronor ($3.3 billion) in dividends and proceeds from the sale of an indirect 8.2 percent stake in OAO MegaFon to Alisher Usmanov’s AF Telecom. Michelin & Cie. rose 6.2 percent as the world’s second-largest tiremaker reported increased first-quarter revenue.
Gains in U.S. equity futures signal the S&P 500 may rebound from the biggest drop in a week yesterday. Texas Instruments Inc., the largest maker of analog semiconductors, increased 3.8 percent in Germany after the company forecast second-quarter earnings that may top some analysts’ estimates. Netflix Inc. plunged 16 percent as the biggest video-subscription service projected a slowdown in growth of U.S. streaming customers.
New Home Sales
Purchases of new homes in the U.S. rose to a 318,000 annual rate in March, according to the median forecast of economists in a Bloomberg survey. The Conference Board’s U.S. consumer- confidence gauge probably decreased to 69.7 this month from 70.2 in March, a separate survey showed.
The MSCI Emerging Markets index rose 0.2 percent, with Hong Kong’s Hang Seng Index adding 0.3 percent and Taiwan’s TAIEX (TWSE) increasing 0.2 percent. India’s Sensex climbed 0.5 percent. Among eastern European markets, Turkey (XU100) was down 0.5 percent and Hungary (BUX) advancing 1.3 percent.
Copper for three-month delivery climbed to $8,100 a metric ton on the London Metal Exchange. All six main industrial metals traded on the exchange gained. In New York, silver for July delivery rose 1 percent to $30.905 an ounce on the Comex after plunging 3.5 percent yesterday.
The Markit iTraxx SovX Western Europe Index of credit- default swaps tied to the debt of 15 governments dropped 3.5 basis points to 282.5.
To contact the reporters on this story: Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net; Paul Armstrong in London at parmstrong10@bloomberg.net
To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net.
