BS: Commodities Rise on China PMI as Metals Gain; Europe Stoc
Industrial metals led an index of commodities to the highest level in more than nine months as China’s factory orders beat estimates. European stocks fell and the dollar weakened.
The Standard & Poor’s GSCI gauge of raw materials rose 0.2 percent to 10:10 a.m. in London. Copper advanced 0.8 percent. The Stoxx Europe 600 Index lost 0.6 percent and S&P 500 Index (SPX) futures futures added less than 0.1 percent after the gauge closed at a record last week. The Bloomberg Dollar Spot Index declined for a fourth day while Australia’s currency strengthened against all of its 16 major peers.
Chinese manufacturing rose to a seven-month high in June, according to a report by HSBC Holdings Plc and Markit Economics. Euro-area manufacturing and services activity retreated this month amid a further slowdown in France’s economy, data also showed. Fighters from an al-Qaeda breakaway group seized all Iraq’s border crossings with Jordan and Syria.
VIDEO: HSBC China Manufacturing PMI at 49.4
“The Chinese data is looking much better, definitely better than my expectation,” Pauline Dan, who helps manage $153 billion as the Hong Kong-based head of greater China equities at Pictet Asset Management Ltd., said by phone.
Longest Rally
The S&P GSCI climbed as much as 0.6 percent to the highest level since Aug. 28. The index rose for an eighth day, the longest streak since November 2010. Copper rose to $6,873.25 a metric ton, the seventh consecutive advance and the longest run of gains since Dec. 16. Zinc rallied as much as 0.7 percent to $2,192 a ton, the highest since Feb. 13, 2013.
A preliminary Purchasing Managers’ Index for China, the biggest consumer of industrial metals, rose 50.8, exceeding the 49.7 median estimate of analysts in a Bloomberg survey. The euro-area PMI composite gauge slipped to 52.8 in June, Markit said today. Economists predicted a reading of 53.4, another survey showed.
VIDEO: China Manufacturing PMI Bounces Back in May to 50.8
European Stocks
All 19 industry groups except for community producers fell in the Stoxx 600, with trading volumes were 7.1 percent greater than the 30-day average, data compiled by Bloomberg show. The gauge gained 0.3 percent last week, closing 0.5 percent short of a six-year high.
BNP Paribas SA lost 0.8 percent after France’s biggest lender was said to be close to an agreement to plead guilty to settle U.S. sanctions allegations. Distribuidora Internacional de Alimentacion SA advanced 4.5 percent after the Spanish discount grocer said it would sell its French business to Carrefour SA.
S&P 500 futures expiring in September were little changed today after the index rallied 1.4 percent last week. It closed at an all-time high of 1,962.87 on June 20.
VIDEO: China June HSBC Flash PMI 50.8; Est. 49.7
The MSCI Emerging Markets Index slipped 0.2 percent. India’s Sensex dropped 0.6 percent, and Dubai’s benchmark gauge retreated 5.1 percent, headed for a bear market.
Putin Backing
The ruble gained 0.6 percent versus the dollar while Russia’s Micex index slipped 0.4 percent. Russian President Vladimir Putin voiced support June 21 for a cease-fire in Ukraine declared by the former Soviet republic’s new president, Petro Poroshenko.
The Bloomberg Dollar Spot Index declined 0.1 percent to 1,008.76 after falling to 1,008.19 on June 19, the lowest level since May 21. The greenback lost 0.2 percent to 101.88 yen and was little changed at $1.3590 per euro.
VIDEO: We Don’t Expect a Big Stimulus From China: Whelan
Australia’s dollar climbed 0.5 percent to 94.37 U.S. cents after rising to 94.45, the strongest since April 10. New Zealand’s currency advanced 0.5 percent to 87.38 U.S. cents after reaching 87.49, the highest since May 6. China is Australia and New Zealand’s biggest trading partner.
German government bonds rose, pushing the yield two basis points lower to 1.33 percent. The rate on 10-year Treasury notes was little changed at 2.60 percent.
To contact the reporters on this story: Yoshiaki Nohara in Tokyo at ynohara1@bloomberg.net; Jonathan Burgos in Singapore at jburgos4@bloomberg.net
VIDEO: There’s a Good Chance of Stimulus in China: Collett
To contact the editors responsible for this story: Stuart Wallace at swallace6@bloomberg.net Stephen Kirkland, Justin Carrigan
