Stocks fell while commodities rose for a third day on speculation that an improving U.S. economy will encourage the Federal Reserve to taper bond purchases. The yen strengthened after Japan’s Prime Minister Shinzo Abe failed to provide additional detail on stimulus measures. The MSCI All-Country World Index lost 0.6 percent to 364.98 at 7:27 a.m. in New York. Standard & Poor’s 500 Index futures slipped 0.5 percent, indicating the gauge will drop, extending a 2.3 percent decline since closing at a record high on May 21. Aluminum, oil and nickel advanced. Japan’s currency gained against all but one of its 16 major peers, while Australia’s dollar slid 1 percent to 95.57 U.S. cents. The 10-year Treasury yield fell three basis points to 2.13 percent. Fed Bank of Dallas President Richard Fisher called for a reduction in the central bank’s bond purchases, which economists from Goldman Sachs Group Inc. and Deutsche Bank AG predict may be curbed from September. A private report today will probably show U.S. job growth quickened in May. Abe said measures related to the “third arrow� of his revival plan won’t start for months. “Fed tapering fears are likely to be felt for several months and this is likely to see ebbs and flows in markets,� said Matthew Sherwood, Sydney-based head of investment market research at Perpetual Ltd., which manages about $25 billion. “The tapering will lay the framework by which markets can prepare to function in a way that is less dependent on central-bank stimulus.� Man Group The Stoxx Europe 600 Index declined 0.9 percent as more than six shares fell for each one that advanced. Man Group Plc (EMG), the world’s biggest publicly traded hedge-fund manager, sank 14 percent, the most since September 2011, as its AHL fund lost about 8.7 percent in May and UBS AG analysts cut their rating on the stock. Meda AB (MEDAA) slid 6 percent in Stockholm after the maker of the Dymista allergy medicine said it’s not in talks to merge with another pharmaceutical company. The S&P 500 dropped 0.6 percent yesterday. Figures at 8:15 a.m. New York time from ADP Research Institute will probably show the pace of company hiring in America quickened to 165,000 in May from 119,000 the previous month, according to the median estimate of 40 economists surveyed by Bloomberg News. A separate report may show factory orders climbed 1.5 percent in April. The MSCI Emerging Markets Index fell 0.7 percent. The Borsa Istanbul Stock Exchange National 100 Index slipped 0.5 percent, led by Akbank TAS after Bank of America Corp. recommended selling shares in the bank part-owned by Citigroup Inc. The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong sank 0.6 percent. Fund Outflows Benchmark gauges in Indonesia, the Philippines and Thailand declined at least 0.4 percent. International money managers pulled a combined $1.6 billion from the Southeast Asian countries since May 22 when Fed Chairman Ben S. Bernanke said policy makers could consider reducing stimulus if they saw sustained economic improvement, according to data compiled by Bloomberg as of June 3. The S&P GSCI (SPGSCI) gauge of 24 commodities gained 0.4 percent, the third consecutive advance and the longest streak since May 20. Aluminum jumped 1.2 percent and nickel climbed 0.4 percent. West Texas Intermediate oil added 0.6 percent to $93.85 a barrel after an industry report yesterday said U.S. crude inventories fell last week. Crude is 2 percent higher this month, after falling 5.4 percent in the past two months. A government report today is also expected to show a decline, according to a Bloomberg survey of analysts. Yen Gains The yen advanced 0.5 percent to 99.55 per dollar, after reaching 98.87 on June 3, the strongest level since May 9. Japan’s currency appreciated 0.6 percent to 130.03 per euro. The Topix index of stocks closed down 3.2 percent after rising as much as 1.2 percent during Abe’s presentation. The euro slipped 0.1 percent to $1.30661. The pound strengthened 0.3 percent to $1.5352 after a report showed services expanded last month more than economists forecast. The Aussie fell after a statistics bureau report showed Australian gross domestic product grew at a 2.5 percent in the first quarter from a year earlier, the slowest pace since the three months ended June 30, 2011. The cost of insuring corporate bonds with credit-default swaps rose, with the Markit iTraxx Europe Index of credit-default swaps linked to 125 investment-grade companies increasing 3.2 basis points to 107.3 basis points. The gauge reached a six-week high of 107.6 on June 3. To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Jae Hur in Tokyo at jhur1@bloomberg.net; To contact the editor responsible for this story: Stuart Wallace in London at Swallace6@bloomberg.net

Source