Stocks, Commodities Climb on Economic Outlook as Dollar Weakens

Indonesian stock info - Stocks, Commodities Climb on Economic Outlook as Dollar Weakens : Stocks advanced, helping the MSCI All-Country World Index pare its weekly loss, and commodities climbed after leaders of the Group of Eight said the global economy is gaining strength. The dollar weakened, and U.S. index futures were little changed.

The MSCI equity index rose 0.5 percent at 10:30 a.m. in London, leaving the gauge little changed after three weeks of declines. Standard & Poor’s 500 Index futures slipped 0.1 percent. The S&P GSCI index of 24 commodities jumped 0.3 percent as silver and copper gained. The dollar slid against all but one of its 16 major peers, while the Swiss franc rose to records against the dollar, the euro and the pound.

The strengthening world economy will pave the way for reductions in debt, G-8 leaders said before the end of their two-day summit, according to a draft statement. Confidence in the recovery may be hurt by reports today that will probably show U.S. personal spending and home sales weakened, following data yesterday that indicated slower growth in the world’s largest economy.

“Following the recent market decline, stock valuations are offering investors some scope for upside,” said Ng Soo Nam, the Singapore-based chief investment officer at Nikko Asset Management Co., which oversees about $126 billion. “While the U.S. economy is showing a painfully slow pace of recovery, I’m comfortable as long as the momentum doesn’t reverse.”

The Stoxx Europe 600 Index climbed 0.9 percent, erasing its loss for the week. HSBC Holdings Plc, Europe’s biggest lender, advanced 1.3 percent and BNP Paribas SA of France jumped 2.9 percent after Citigroup Inc. recommended buying shares in European banks.

Russia, China

The MSCI Emerging Markets Index advanced 0.8 percent, heading for the highest closing level in two weeks. Russia’s Micex Index gained 1.1 percent as OAO Lukoil and OAO Gazprom climbed. The Shanghai Composite Index lost 1 percent, extending the biggest weekly drop in 11 months, on concern inflation will accelerate. Turkey’s ISE National 100 Index fell 2.1 percent after JPMorgan Chase & Co. cut its rating on the market to “underweight” from “overweight,” citing a growing current- account deficit and reduced profit forecasts for banks.

The gain in U.S. futures indicated the S&P 500 will climb for a third day. A U.S. Commerce Department report may show consumer spending advanced 0.5 percent in April, the smallest gain in three months, according to the median estimate of economists surveyed by Bloomberg. Contract signings for existing homes fell 1 percent in April after a 5.1 percent increase the prior month, economists said before a report from the National Association of Realtors.

Japan

The yen appreciated 0.4 percent against the dollar, while the yield on the 10-year Japanese government bond fell three basis points. Japan’s policy makers, striving for more than two years to end deflation, refrained from calling a victory after consumer prices rose in April, with a recession damping the nation’s outlook. The Nikkei-225 Stock Average declined 0.4 percent, capping its third weekly drop. Japan had its credit outlook lowered to negative from stable by Fitch Ratings.

The Dollar Index, which tracks the U.S. currency against those of six trading partners, dropped 0.4 percent, paring its first monthly advance since November. The euro strengthened 0.4 percent to $1.4204. The Swiss franc climbed as much as 1.4 percent against the dollar, 0.6 percent versus the dollar and 1.2 percent against the pound.

The yield on the 10-year German bund fell two basis points, while the two-year yield slipped three basis points. The yield on the Irish 10-year bonds advanced eight basis points, while the similar-maturity Italian yield increased four basis points.

Silver jumped 0.8 percent. The U.S. Mint said its San Francisco facility will start producing American Eagle silver coins to meet demand that is at “unprecedented high levels.” Copper futures in New York climbed 1.1 percent after stockpiles of the metal in Shanghai declined for the 10th consecutive week. Oil rose 0.3 percent to $100.55 a barrel.


Related Post:

No comments:

Post a Comment