Bonds climbed, sending Italian and Spanish yields to record lows for a second day, while European stocks advanced and Standard & Poor’s 500 Index futures signaled the gauge will extend yesterday’s record-high close. The yen ended a six-day decline and gold rebounded. Italy’s (GBTPGR10) 10-year yield slid six basis points to 2.42 percent at 7:40 a.m. in New York, and Spain’s rate dropped to as low as 2.17 percent. European corporate credit risk fell to the lowest in more than seven weeks. S&P 500 futures rose 0.2 percent and the Stoxx Europe 600 Index added 0.4 percent. The yen strengthened 0.1 percent against the dollar. Gold for immediate delivery advanced 0.9 percent. Treasury two-year notes yielded near the most versus similar-maturity German debt since 2007 amid signs of a U.S. recovery and speculation of more stimulus from the European Central Bank. The presidents of Russia and Ukraine are set to meet in Minsk, Belarus, today as tensions flare in the region. Durable goods and housing data are due in the U.S. after new-home sales fell short of all economists’ estimates. “The U.S. is on a clear track to tighter policy with gathering economic momentum, while the euro zone continues to deteriorate even after that last round of monetary easing,� Hugh Killen, global head of foreign exchange in Sydney at Westpac Banking Corp., said by instant message. Spanish 10-year yields tumbled for a sixth day, the longest streak of declines since March. Italy’s yield dropped as low as 2.40 percent. Bond Risk The cost of insuring against losses on European corporate debt declined to a seven-week low. The Markit iTraxx Europe index of credit-default swaps on 125 investment-grade companies decreased 3 basis points to 56.5 basis points, the lowest since July 4. More than two shares advanced for every one that declined in the Stoxx 600, with trading 14 percent below the 30-day average, data compiled by Bloomberg show. WPP Plc (WPP) added 1.7 percent as the advertising agency posted first-half sales that beat analysts’ estimates. Eurazeo SA gained 2.1 percent after its chairman said the French buyout firm is considering some initial public offerings. ArcelorMittal climbed 2.7 percent after UBS AG recommended buying the stock. Telecity Group Plc declined 6 percent after the operator of data centers said its chief executive will step down in October. Vestas Wind Systems A/S (VWS) slid 5.2 percent after Bank of America Corp.’s Merrill Lynch unit lowered its rating on the world’s largest wind-turbine maker to the equivalent of a sell. The S&P 500 index (SPX) rose 0.5 percent yesterday, briefly topping 2,000 intraday for the first time in history. Best Buy Best Buy Co. and Analog Devices Inc. are reporting earnings. About 76 percent of those that have posted results this season have beaten analysts’ estimates for profit, while 66 percent exceeded sales projections, according to data compiled by Bloomberg. The MSCI Emerging Markets Index swung between gains and losses after closing yesterday at a three-year high. Russia’s Micex slipped 0.3 percent and the ruble weakened for a second day, losing 0.2 percent. Russian President Vladimir Putin is scheduled to meet with Ukrainian President Petro Poroshenko today, during trade talks in Minsk. No separate bilateral meeting is yet planned between them, Russian Foreign Minister Sergei Lavrov said yesterday. European Union representatives will be present at the talks, which are aimed at tempering a conflict that the United Nations says has left at least 2,000 dead since Putin annexed the Crimean peninsula in March. Russian Tanks Ukraine said yesterday an armored column including 10 tanks entered from Russia as the government in Moscow announced plans to send a second convoy with humanitarian aid into rebel-held Ukrainian territory. The Shanghai Composite Index (SHCOMP) fell for a second day, losing 1 percent, amid concern new initial public offerings may divert funds from existing equities. The 10 companies that will start to market initial public offerings this week, including HMT Xiamen New Technical Materials Co. and Hubei Feilihua Quartz Glass Co., may freeze about 800 billion yuan ($130 billion), according to the Shanghai Securities News. Pakistan’s benchmark equity gauge dropped 1 percent, extending yesterday’s 1.2 percent decline. Cleric Muhammad Tahir-ul-Qadri, who has been leading a 12-day protest, gave Prime Minister Nawaz Sharif 48 hours to dissolve the parliament and call fresh elections, or face consequences. Yellen Approach The euro was little changed at $1.3201 after touching the lowest intraday level since Sept. 9. The yen strengthened to 103.90 per dollar, after dropping 0.1 percent yesterday, its sixth day of declines and the longest slump this month. Investors are assessing the differences in approach signaled by U.S., European and Japanese central-bank chiefs. European Central Bank President Mario Draghi indicated at last week’s Federal Reserve Bank of Kansas City symposium that he may boost stimulus, as policy makers in the 18-nation area seek to ignite economic growth and price growth. Bank of Japan Governor Haruhiko Kuroda said centralbanks need to fight deflation by any and all means. Fed Chair Janet Yellen hinted in her address at Jackson Hole, Wyoming, that the timeline for interest-rate increases could be brought forward, with U.S. policy makers already paring back asset purchases. U.S. Economy In the U.S., a report at 8:30 a.m. Washington time may show durable-goods orders in the world’s largest economy climbed 8 percent in July, according to the median estimate of economists surveyed by Bloomberg News. They rose 1.7 percent in June. Separate data may show consumer confidence slipped. The Conference Board’s index fell to 89 this month from 90.9 in July, forecasts indicate. Gold climbed to $1,287.51 an ounce in London, rebounding after trading near the lowest since June yesterday. Silver for immediate delivery increased 1 percent to $19.5459 an ounce. West Texas Intermediate crude oil rose 0.3 percent to $93.60 a barrel in New York, after falling 0.3 percent to its lowest close since January last session. Brent crude oil rose 0.2 percent to $102.80 a barrel in London trading. To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net To contact the editors responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net John McCluskey

Source