Thai stocks, currency tumble amid concern over King’s health S&P 500 Index sank on Tuesday as Alcoa earnings diappointed Share on Facebook Share on Twitter The pound rallied after Prime Minister Theresa May accepted that Parliament should be allowed to vote on her Brexit plan. European stocks fluctuated as investors assessed earnings for signs of growth against the backdrop of speculation on a tightening of U.S. monetary policy. Sterling climbed the most since August as May’s move reassured investors that the government would take a more measured approached to negotiations with the European Union. Stocks in the region were little changed while the MSCI Asia Pacific Index retreated to a three-week low. Thailand’s stock market and currency extended this week’s losses after the royal palace said Sunday that King Bhumibol Adulyadej’s condition was unstable. Oil held above $50 as OPEC received further commitments from Russia that the world’s largest energy exporter is willing to participate in a coordinated effort to curb production. May’s decision to give lawmakers a say over Brexit halted a four-day rout in the pound that was sparked by concern she was taking a hard-line approach to the negotiations. It’s not just sterling that’s been upended in foreign-exchange markets this week -- the baht’s slump sent it to the weakest level since January, while the rand plunged the most in more than three months on Tuesday after South Africa’s finance minister was summoned to appear in court to face charges. That’s helping support the dollar, which has also been buoyed by speculation that the Federal Reserve is moving closer to raising interest rates. “The vote is a major concession that does reduce the room to maneuver for Theresa May’s government in the negotiation,� said Hans Redeker, Morgan Stanley’s chief global currency strategist in London. “That is currently read as positive for sterling.� Currencies The pound climbed 1.1 percent to $1.2257 at 7 a.m. in New York, rebounding from near a three-decade low. Parliament will debate on Wednesday a motion from the opposition Labour Party calling for a “full and transparent debate on the government’s plan for leaving the EU� and for lawmakers to be able to “properly scrutinize that plan� before May begins formal talks. In response, May tabled an amendment that effectively accepted the motion, adding that there shouldn’t be an attempt to block Brexit or “undermine the negotiating position of the government.� The Bloomberg Dollar Spot Index, a gauge of the greenback against 10 major peers, was little changed after rising for the past two days and closing at the strongest level since July 25 on Tuesday. Investors will scrutinize minutes from the Fed’s latest decision due Wednesday, with odds of a U.S. rate increase by year-end climbing to 68 percent amid speculation the recent surge in oil prices will fuel inflation, based on futures data compiled by Bloomberg. China’s central bank weakened the yuan’s reference rate for a sixth day, the longest run of cuts in nine months, amid speculation policy makers will allow further declines as the dollar rises. The currency was little changed at a six-year low. South Africa’s rand swung between gains and losses after tumbling 3.9 percent on Tuesday, the most in more than three months, after Finance Minister Pravin Gordhan was summoned to appear in court. Stocks Thailand’s benchmark SET Index sank 2.5 percent and the baht slid. The county’s 88-year-old monarch’s health is closely watched as he is revered by many for what they say has been his unifying presence during a seven-decade reign. Foreign funds pulled $426 million from Thai sovereign bonds in the first two days of the week, exchange data show. Ericsson AB sank 17 percent after the Swedish network maker reported a slump in third-quarter sales and profitability, dragging a gauge of technology shares to the worst performance of the Stoxx Europe 600 Index’s 19 industry groups. BASF SE rose 0.5 percent after the world’s largest chemical maker posted a smaller-than-expected decline in quarterly profit. Fresnillo Plc slipped 0.6 percent as the precious-metals miner said silver production slowed in the third quarter from a year earlier due to personnel issues and availability of equipment. S&P 500 Index futures were little changed, after falling Tuesday to an almost four-week low as an early batch of disappointing corporate results including those from Alcoa Inc. damped optimism over a rebound in earnings. “The market will need some reassurance that a soft start to earnings season has been nothing more than a few outliers,� said Alan Higgins, chief investment officer at Coutts & Co. in London. His firm oversees the equivalent of $18 billion. “Investors are also building in a higher probability of a Fed hike as each week goes past. These next few months will be very busy.� The MSCI Asia Pacific Index dropped 0.6 percent. Hong Kong’s Hang Seng Index retreated 0.6 percent in a third day of losses as Bank of China Ltd. and Bank of Communications Co. sank more than 2.8 percent. In Japan, the Topix lost 1 percent. Commodities West Texas Intermediate crude was little changed at $50.81 a barrel after Saudi Arabia’s oil minister left Istanbul with a pledge that Russia would join efforts to limit production. That leaves internal OPEC disagreements over how to share the burden of the cuts as the last obstacle to a global deal. Russia’s two largest oil producers said Tuesday they would comply with any government instructions to curb output, following President Vladimir Putin’s backing on Monday for a supply deal with the Organization of Petroleum Exporting Countries. Gold for immediate delivery gained 0.1 percent to $1,254.06 an ounce following a 0.5 percent drop last session, its ninth decline in 12 days. Zinc rallied 0.7 percent after sliding the most in 10 months, while copper added 0.3 percent on the London Metal Exchange. Bonds Sterling corporate borrowing costs have risen back to early August levels, reversing a decline sparked by an interest-rate cut and the Bank of England’s announcement of plans to buy company bonds to help ease the economic impact of Brexit. The average yield has climbed to 2.48 percent, based on a Bloomberg Barclays index. Australian government debt extended declines, with 10-year yields rising for a seventh straight day, adding five basis points to 2.30 percent. Spanish bonds led declines in the euro region’s fixed-income market on speculation that caretaker Prime Minister Mariano Rajoy may face a confidence vote this month. The vote could come on Oct. 28, El Mundo reported on Wednesday, using its own calculations pegged to the King of Spain’s talks with parties. The 10-year yield rose four basis points to 1.06 percent. Similar maturity Treasuries yielded 1.78 percent, little changed following a five basis-point jump last session. U.S. securities due in 10 years or more have lost 5.8 percent in the three months through Monday, the most among 144 government bond indexes tracked by Bloomberg and the European Federation of Financial Analysts Societies. The nation will auction $24 billion of three-year notes and $20 billion of 10-year securities on Wednesday.

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