BLBG:Euro Weakens, Copper Erases Gain On Economy; Corn Climbs
The euro weakened against the dollar and copper erased gains as the European Central Bank said the economic outlook is deteriorating. Stocks and U.S. equity-index futures were little changed, while corn climbed to a record before a U.S. harvest report.
The euro depreciated 0.2 percent to $1.2339 at 10:04 a.m. in London. The Stoxx Europe 600 Index (SXXP) rose 0.1 percent after declining 0.1 percent. Standard & Poor’s 500 Index futures swung between gains and losses. Copper slipped 0.2 percent in London after climbing as much as 0.5 percent. Corn added 0.9 percent.
The ECB’s survey of professional forecasters lowered the outlook for the euro area, predicting the economy will shrink 0.3 percent, down from a 0.2 percent contraction predicted earlier. The U.S. government is likely to cut its corn-harvest estimate tomorrow after the worst U.S. drought in at least a generation damaged crops, according to analysts surveyed by Bloomberg. Stocks (MXWD) rose earlier as easing inflation in China fueled speculation policy makers will do more to boost growth.
U.S. futures were little changed after the S&P 500 advanced for a fourth day yesterday. A report at 8:30 a.m. in Washington may show initial claims for jobless benefits increased to 370,000 last week from 365,000 in the previous period, according to a Bloomberg survey of economists.
Nestle SA, the world’s largest food company and the biggest stock in the Stoxx 600, advanced 2 percent after posting first- half sales growth that exceeded analysts’ projections. Subsea 7 SA, a Norwegian provider of offshore oilfield services, climbed 6.8 percent in Oslo trading after second-quarter earnings analyst estimates.
Emerging Markets
The MSCI Emerging Markets Index rose 0.9 percent. The Hang Seng China Enterprises Index of mainland companies rose 1 percent. China’s consumer prices rose 1.8 percent last month, compared with a 2.2 percent gain in June. South Korea’s Kospi Index jumped 2 percent. The Bank of Korea said growth momentum is “slackening,” fueling speculation for rates cut borrowing after keeping its interest rate unchanged today.
Gold for immediate delivery reached $1,618.80, the highest price since July 31. Natural-gas dropped 0.9 percent on speculation a supply glut will worsen once the summer cooling season ends.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net;
To contact the editor responsible for this story: Mark Gilbert at magilbert@bloomberg.net
