BLBG:Stocks Advance With Yen Before U.S. Jobs Report as Oil Declines
European stocks advanced, with the regional index (MXEF) heading for its first weekly gain in three, before the U.S. jobs report and the yen strengthened after the Bank of Japan held off from adding to stimulus. Oil slipped and the rand was poised for its biggest weekly drop this year.
The Stoxx (SXXP) Europe 600 Index rose 0.7 percent at 12:20 p.m. in London and futures on the Standard & Poor’s 500 Index added 0.1 percent. India’s S&P CNX Nifty Index was 0.8 percent lower after slumping 16 percent earlier on erroneous trades. The rand weakened 1.3 percent and the yen’s 0.1 percent gain ended a six- day drop versus the euro. Oil slid 0.9 percent and Italian and Spanish bonds snapped two days of declines.
The U.S. added 115,000 nonfarm jobs last month, up from 96,000 in August, and the unemployment rate increased to 8.2 percent from 8.1 percent, according to the median of as many as 92 economist estimates compiled by Bloomberg. Federal Reserve minutes released yesterday signaled the central bank is linking its outlook for near-zero interest rates to specific economic conditions such as unemployment. German factory orders fell 1.3 percent in August, more than economists forecast.
“While we are waiting for the nonfarm payrolls data, the market has seen enough to continue on its yield-hunting way,” Kit Juckes, head of foreign-exchange research at Societe Generale SA in London, said by e-mail today. “At the start of the week there was a temptation to cut back longs in credit, equities or the euro, but now the mood is bullish.”
Zynga Games
Two shares gained for every one that fell in the Stoxx 600, leaving it 1.7 percent higher this week. National Bank of Greece SA rose 4.5 percent and EFG Eurobank Ergasias SA added 5.5 percent. To Vima reported the Greek lenders are in merger talks.
The S&P 500 has climbed for four straight days, bringing this week’s increase to 1.8 percent. Zynga Inc. (ZNGA) fell 18 percent in Germany after the game maker cut its forecast for full-year bookings, citing lower demand for titles such as “The Ville.”
The Labor Department’s jobs report is scheduled for 8:30 a.m. in Washington. German factory orders had been forecast to drop 0.5 percent, the median of 31 economist estimates compiled by Bloomberg.
Japan’s currency appreciated to 102.05 yen per euro, ending its longest run of declines since March. It was little changed at 78.48 yen per dollar.
The rand slid for a third day against the dollar to a four- month low as strikes in South Africa’s mining and transport industries spread. It weakened 3.8 percent this week, the most since November. Illegal strikes spread across South Africa’s mining industry since a stoppage that began Aug. 10 at Lonmin Plc resulted in pay increases of as much as 22 percent. The dispute left 46 people dead, including 34 shot by police.
Spanish Yields
Spain’s 10-year yield dropped 13 basis points to 5.75 percent and the rate on similar-maturity Italian debt declined eight basis points to 5.05 percent.
Treasury 10-year notes were little changed, with the yield at 1.68 percent, after the rate climbed six basis points yesterday. The yield gap between the securities and similar- maturity inflation-linked bonds, a gauge of expectations for consumer prices, widened four basis points to 2.59 percentage points, 17 basis points wider on the week. That would be the second-largest increase this year after a 27 basis-point jump in the five days through Sept. 14.
Crude dropped to $90.89 a barrel after jumping 4.1 percent yesterday. Exxon Mobil Corp. (XOM) and Valero Energy Corp. (VLO) are rationing fuel deliveries to customers in California as refinery outages cut into the state’s supplies.
California Gasoline
Spot gasoline in California, with its own blending requirements to reduce smog, surged to record highs this week. Wholesale prices in Los Angeles cost $1.45 a gallon more than futures on the New York Mercantile Exchange yesterday, the widest gap since at least November 2007, when Bloomberg began collecting data there.
The MSCI Emerging Markets Index rose 0.3 percent, climbing for a second day and heading for the highest since Sept. 19. India’s Sensex (SENSEX) pared a 1.6 percent plunge, which the National Stock Exchange said was caused by 59 erroneous orders, and traded 0.6 percent lower.
Volume of trading on the BSE 30 Sensitive Index was almost triple the 30-day moving average.
To contact the reporters on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net
To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net
