U.S. stocks rose, capping a week of record swings for the Standard & Poor’s 500 Index, as an increase in retail sales tempered concern the economy is slowing. European shares extended a rebound from a two-year low after some nations banned short-sales. Treasuries gained.
The MSCI Emerging Markets Index was little changed as of 4:30 p.m. in New York, sending the gauge down 4.9 percent this week. Increases in Latin American stock markets, including Brazil, Chile and Colombia, helped blunt declines in India, South Korea and Taiwan. Most eastern European markets gained after short-selling bans were imposed in four Euro-region nations.
The MSCI gauge has dropped 18 percent from its May 2 high, sending valuations to 9.1 times analysts’ 12-month profit estimates, 30 percent below the 20-year average, data compiled by Bloomberg and Morgan Stanley show.
The downgrade of America’s top credit rating by Standard & Poor’s, weaker-than-forecast U.S. economic data and signs that Italy and Spain may struggle to refinance debt have eroded investor confidence in riskier assets this month, erasing more than $6.8 trillion of global stock-market value from July 26 through yesterday.
Most emerging-market currencies weakened versus the dollar for the week, led by the South African rand with a 3.6 percent drop and Poland’s zloty, which lost 3.3 percent. China’s yuan rose 0.8 percent, the best performer among 25 emerging economies, as the nation reported its biggest trade surplus in two years.
Brazil’s Bovespa Index edged up 0.2 percent, posting its first weekly gain in three. Petroleo Brasileiro SA, the state- controlled oil company advanced for the fourth day. Chile’s Lan, Latin America’s largest airline by market share, was recommended for “approval without restrictions” for its planned takeover of Tam SA by Brazil’s Finance Ministry. Both airlines gained.
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