Investor confidence in U.S., Chinese economies is improving Raw-materials companies lead gains in European index Share on Facebook Share on Twitter Stocks rose around the world as data showing strength in the American consumer boosted confidence in the U.S. economy, while signs of stabilization in China sent industrial metals and oil higher as the worst commodities rout since the financial crisis eased. The Standard & Poor’s 500 Index climbed for a third day after sinking to a two-month low, while the Stoxx Europe 600 Index headed for its biggest advance in a week. Trading was subdued before the year-end holidays. Treasuries fell on speculation the economy can withstand tighter monetary policy. Oil maintained gains in New York following U.S. inventories data. An increase in consumer purchases in November was accompanied by rising wages and scant inflation, adding to evidence the biggest part of the U.S. economy will continue to underpin growth. In China, early indicators in December are showing more signs of stabilization as leaders say they’ll do more to bolster the expansion. Oil’s rebound from a six-year low boosted shares in energy producers that have been beaten down this year. “The huge rebound in some oil and basic-material stocks really fuels the rally today and people are buying the laggards of this year.� said Benno Galliker, a trader at Luzerner Kantonalbank AG in Lucerne, Switzerland. “It’s usual for the market to go higher the day before Christmas holidays, and the volumes are very thin so you can easily move the market.� The S&P 500 climbed 0.6 percent at 10:31 a.m. in New York, adding to a rally that added 1.7 percent over two days. The index trimmed its decline in December to 1.4 percent and is now lower by 0.4 percent in 2015. “The gains in oil and materials are certainly helping the market dig itself out of the hole that it’s created for itself,� said Peter Jankovskis, co-chief investment officer of Lisle, Illinois-based OakBrook Investments LLC. “Consumer spending looks good and it bodes well for the economy going forward. Hopefully we’ll have that Santa rally that everyone is waiting for.� Trading in S&P 500 shares was lower than the 30-day average at this time of day. U.S. exchanges will close early on Thursday for the Christmas holiday and reopen on Dec. 28. Some European markets are closed on Thursday, while others have shorter trading days. Most will reopen Monday, while U.K. markets do so on Dec. 29. The Stoxx Europe 600 Index added 2.2 percent, as all 19 industry groups advanced. Miners and energy shares led gains in Europe, with ArcelorMittal gaining 12 percent. Royal Dutch Shell Plc rose 5 percent after announcing further cuts in spending. The Stoxx 600 has still declined 5.4 percent this month, on track for its worst December since 2002. The gauge has gained 6.5 percent this year, poised for a fourth straight annual gain. Commodities West Texas Intermediate February futures climbed 2.1 percent to $36.90 a barrel in New York. On Tuesday it rose to a premium over Brent for the first time since January on speculation the U.S. decision this month to end a 40-year ban on exports may ease the nation’s oversupply. The industry-funded American Petroleum Institute was said to report Tuesday that U.S. crude inventories fell by 3.6 million barrels. The commodity is heading for a second yearly loss on signs a global glut will be prolonged after the Organization of Petroleum Exporting Countries effectively abandoned output limits at a meeting earlier this month. Brent, the benchmark for more than half the world’s crude, is poised to end 2015 with the lowest annual average price in 11 years. Industrial metals rallied after a report Tuesday showed the U.S. economy expanded faster than estimated, boosting demand in the second-largest metals user. Aluminum climbed to the highest level since October on the London Metal Exchange, while zinc added 1.7 percent. The LME index of six industrial metals has fallen 25 percent this year, heading for the biggest drop since 2008. Emerging Markets The MSCI Emerging Markets Index climbed for a third day as energy companies rallied with oil, gaining 0.7 percent, with all industry groups advancing. Equity gauges in Thailand, Malaysia, India, Russia and Turkey rose at least 1 percent. The Hang Seng China Enterprises Index of mainland companies surged to the highest close since Dec. 3. China’s earliest indicators of growth for December showed more signs of stabilization as leaders of the world’s second-largest economy signaled they’ll do more to prevent a sharp slowdown. The Shanghai Composite Index fell 0.4 percent. A gauge tracking 20 emerging-market currencies was little changed after a three-day gain. The ruble climbed 0.9 percent. The rupiah strengthened for a fifth day, set for its longest rally since December 2014, after local media Investor Daily reported the nation will cut regulated fuel prices in January. Currencies The euro dropped against most of its 16 major peers. The common currency slid 0.4 percent to $1.0914, halting a three-day advance. The Bloomberg Dollar Spot Index was little changed, still on course for a 0.5 percent drop this month as traders bet the Federal Reserve will wait until at least April to raise interest rates again. Vietnam’s dong declined to the limit of its current trading band for the first time, reflecting further pressure to weaken after three devaluations already this year. The currency diverged from the State Bank of Vietnam’s daily reference rate of 21,890 by the maximum 3 percent that’s permitted. Bonds U.S. 10-year Treasuries fell, with yields increasing three basis points to 2.27 percent. The Securities Industry and Financial Markets Association recommends an early close for U.S. bond markets Thursday and a full closure on Friday for Christmas. The yield on similar-maturity German bonds rose two basis points to 0.63 percent, while that on U.K. gilts added five basis points to 1.92 percent. The cost of insuring corporate debt fell. The Markit iTraxx Europe Index of credit-default swaps on investment-grade companies dropped one basis point to 81 basis points. A gauge of swaps on non-investment grade companies declined six basis points to 328 basis points. Corporate executives are facing the possibility that debt markets in Europe may never be as good as they were in 2015. Borrowers including Telecom Italia SpA and LafargeHolcim Ltd. bought back about 35 billion euros of their own bonds this year, a record according to data compiled by Citigroup Inc. which tracks all currencies and also includes companies in Russia and former Soviet republics.

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