BLBG:Oil, Gold Fall as Europe Stocks Gain, Rupee Rebounds
Oil retreated from a two-year high, gold declined and India’s rupee rebounded from a record low. European stocks climbed for the first time in four days, led by the biggest rally in Vodafone (VOD) Group Plc since 2008.
West Texas Intermediate crude fell 0.9 percent to $109.15 a barrel at 6:14 a.m. in New York. Gold retreated for the first time in six days. The rupee strengthened 2 against the dollar. The Stoxx Europe 600 Index added 0.5 percent as Vodafone jumped 8.5 percent to an 11-year high after saying it’s in talks over the sale of a 45 percent holding in its Verizon Wireless venture. Standard & Poor’s 500 Index (SPX) futures advanced 0.1 percent. The dollar gained 0.5 percent versus the yen while Treasuries declined.
Oil surged yesterday on speculation the conflict in Syria may spread and threaten supplies from the Middle East. While the U.K. Parliament is scheduled to debate today backing for a military response, Prime Minister David Cameron backed down from asking lawmakers for immediate support. The dollar gained today before data that may show the U.S. economy grew faster than initially estimated, boosting speculation the Federal Reserve will pare stimulus.
“The significance of the Syria problem may have eased a bit in the past one or two days since you have the most noise on the first day,” Tobias Britsch, who helps oversee about $33 billion as European equities asset manager at Meriten Investment Management GmbH, said by telephone from Dusseldorf, Germany.
Commodities Fall
The S&P GSCI (SPGSCI) gauge of 24 commodities dropped 0.5 percent, the first decline in six days as Brent oil declined 0.7 percent to $115.76 a barrel. Gold slipped 0.7 percent to $1,407.03 an ounce. Copper fell 0.6 percent, the third consecutive decline.
Three shares gained for each one that fell in the Stoxx 600, bringing this month’s advance to 0.1 percent. Vodafone surged after the mobile-phone company said it’s in discussions with Verizon Communications (VZ) Inc. over a sale of its 45 percent holding in their Verizon Wireless venture to the U.S. carrier. Verizon Communications rose 2.1 percent in German trading.
Carrefour SA climbed 4.9 percent as France’s largest retailer posted increased first-half profit. WPP Plc, the world’s biggest advertising company, advanced 4.1 percent after reporting a gain in sales.
The gain in S&P 500 futures indicated the U.S. index will extend yesterday’s 0.3 percent increase. Guess? Inc. (GES) surged 18 percent in pre-market New York trading as the clothes maker reported second-quarter profit that topped estimates and boosted its full-year forecast.
Emerging Markets
The MSCI Emerging Markets Index climbed 1.2 percent, trimming its monthly loss to 2.8 percent. The Philippine Stock Exchange Index jumped 3.6 percent, snapping a two-day, 6.9 percent slump, as the economy grew for the fourth straight quarter, beating analysts’ estimates. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong added 0.9 percent.
India’s rupee climbed as much as 2.9 percent and the Sensex gauge of equities rose 2.3 percent. The central bank said it will sell dollars to the nation’s biggest oil importers to cool demand for foreign exchange. The lira added 0.4 percent after losing 2.5 percent in the previous three days. The South Korean won climbed 0.5 percent after Finance Minister Hyun Oh Seok said a widening current-account surplus would buoy the currency.
The dollar strengthened 0.6 percent to $1.3265 per euro after appreciating to $1.3254, the strongest level since Aug. 15. The U.S. currency gained 0.6 percent to 98.19 yen.
Revised Commerce Department data today will probably show the economy grew at a 2.2 percent annualized rate in the second quarter, according to a Bloomberg News survey, compared with the initial reading of 1.7 percent. Separate data are projected to show a decline in applications for jobless benefits.
Demand Slides
The yield on 10-year U.S. notes increased three basis points to 2.79 percent. The nation plans to auction $29 billion of seven-year debt today, after a sale of five-year securities yesterday drew the least demand in four years.
Italian 10-year bonds advanced for a second day amid speculation easing political tension in the nation will boost investor demand at a 6 billion-euro ($7.96 billion) debt sale today. Italy’s government, led by Prime Minister Enrico Letta, yesterday agreed to a compromise on a property tax in a deal that may mend relations with Silvio Berlusconi, his partner in a fragile coalition.
The yield on the securities fell four basis points to 4.37 percent. Italy sold 6 billion euros ($8 billion) of five and 10-year securities, matching its maximum target.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Glenys Sim in Singapore at gsim4@bloomberg.net;
To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net
