Stocks fell in the U.S. and Europe amid concern the government debt crisis is worsening in nations such as Ireland and Spain. The dollar weakened and gold touched a record on bets the Federal Reserve will buy more debt.
The Stoxx Europe 600 Index lost 0.5 percent and the Standard & Poor’s 500 Index slumped 0.3 percent as of 4 p.m. in New York. The MSCI Emerging Markets Index rallied 1 percent to a 27-month high and copper topped $8,000 a metric ton for the first time since April as China’s manufacturing accelerated. The Dollar Index slid to an eight-month low of 78.616.
Spain’s top credit rating at Moody’s Investors Service is at risk as the nation struggles to emerge from recession and reduce its budget deficit, according to a Bloomberg News survey. Workers in the nation interrupted transportation and broadcasts in a general strike today to protest government spending cuts. Ireland is due to announce the cost of bailing out state-owned lender Anglo Irish Bank Corp. tomorrow.
“The biggest single danger remains Europe,” Mark Grant, managing director at Southwest Securities Inc. in Fort Lauderdale, Florida, said in a note to institutional clients. “The question remains just how much of the austerity measures people will actually take before either political or social unrest demands a change in policies or a refusal to bend to the EU dictates.”
JPMorgan Chase & Co. and Wells Fargo & Co. paced losses as financial companies in the S&P 500 retreated 0.8 percent, the second-biggest drop among 10 industries. The group fell the most in the Stoxx Europe 600.
H&M Tumbles
HSBC Holdings Plc, Europe’s biggest bank, fell 1.6 percent in London, and BNP Paribas SA, France’s largest lender, lost 2.4 percent in Paris. Hennes & Mauritz AB led a selloff in the region’s retailers, tumbling 6.5 percent after profit missed estimates. BP Plc gained 3.9 percent after the Associated Press cited Steve Scalise, a Louisiana Republican Congressman, as saying a possible settlement with the energy company over the Gulf of Mexico spill was under discussion. A U.S. Justice Department official said no talks were under way.
BP’s $3.5 billion of bonds, its first debt sale since a rig explosion in April, rose on their first day of trading, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
The S&P 500 drifted between gains and losses after a 0.5 percent advance yesterday. The gauge has rallied 9.1 percent since the end of August, poised for its best month since April 2009 and its biggest September rally since 1939.
HP Beats Estimates
Hewlett-Packard Co. advanced 2.2 percent today in the U.S. after the world’s largest computer maker predicted earnings and sales that exceeded estimates and said it will return cash to shareholders.
The MSCI China Index advanced 1.5 percent, helping lead gains among equity gauges in major emerging markets, after a purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics rose to the highest level in five months. Developing-nation currencies appreciated, led by a 0.9 percent gain in the Turkish lira and an advance in the Taiwan dollar to its strongest level versus the U.S. currency since August 2008.
China currency legislation will pass the U.S. House today with bipartisan support, the measure’s sponsors said after a committee approved the bill for consideration. The vote later today in Washington will be the first for the House on a bill aimed at prodding China to raise the value of its currency after years of debating the issue.
Copper, Gold, Silver
Copper for delivery in three months gained 1.4 percent to $8,064 a metric ton on the London Metal Exchange. China is the world’s largest buyer of copper. Crude oil futures for November delivery rallied 2.3 percent to $77.90 a barrel. Gold futures rose to a record $1,314.80 an ounce, and silver climbed above $22 an ounce for the first time since 1980.
Spanish 10-year bond yields rose 2 basis points to 4.20 percent and the yield premium relative to benchmark German bunds, known as the yield spread, widened to 196 basis points, after earlier increasing to the widest since July 15. The Irish- German spread retreated after earlier widening to a record 454 basis points, or 4.54 percentage points.
Five of eight money managers surveyed by Bloomberg predicted Spain’s credit rating at Moody’s would be reduced by one step to Aa1, with the rest forecasting a two-level cut to Aa2. The decision may come this week after the New York-based rating company placed the nation’s debt on review for a possible downgrade on June 30, saying it would conclude the analysis within three months. The managers oversee about $700 billion between them.
Spanish Strikes
Spain’s two biggest unions said 72 percent of workers joined the first general strike in eight years, including 65 percent in the energy sector and 82 percent in the airline industry, according to Jose Javier Cubillo of the UGT union. Labor Minister Celestino Corbacho said 7.5 percent of state workers joined the strike this morning.
More than 100,000 protesters descended on Brussels before a meeting between union members and European Commission President Jose Barroso, organizers said. In Athens, rail, communications and port workers struck. Police in Dublin made an arrest after a truck damaged the front gates of the parliament building.
To contact the reporters on this story: Michael P. Regan in New York at mregan12@bloomberg.net; Paul Armstrong in London at parmstrong10@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.
http://jodnet.blogspot.com
The Stoxx Europe 600 Index lost 0.5 percent and the Standard & Poor’s 500 Index slumped 0.3 percent as of 4 p.m. in New York. The MSCI Emerging Markets Index rallied 1 percent to a 27-month high and copper topped $8,000 a metric ton for the first time since April as China’s manufacturing accelerated. The Dollar Index slid to an eight-month low of 78.616.
Spain’s top credit rating at Moody’s Investors Service is at risk as the nation struggles to emerge from recession and reduce its budget deficit, according to a Bloomberg News survey. Workers in the nation interrupted transportation and broadcasts in a general strike today to protest government spending cuts. Ireland is due to announce the cost of bailing out state-owned lender Anglo Irish Bank Corp. tomorrow.
“The biggest single danger remains Europe,” Mark Grant, managing director at Southwest Securities Inc. in Fort Lauderdale, Florida, said in a note to institutional clients. “The question remains just how much of the austerity measures people will actually take before either political or social unrest demands a change in policies or a refusal to bend to the EU dictates.”
JPMorgan Chase & Co. and Wells Fargo & Co. paced losses as financial companies in the S&P 500 retreated 0.8 percent, the second-biggest drop among 10 industries. The group fell the most in the Stoxx Europe 600.
H&M Tumbles
HSBC Holdings Plc, Europe’s biggest bank, fell 1.6 percent in London, and BNP Paribas SA, France’s largest lender, lost 2.4 percent in Paris. Hennes & Mauritz AB led a selloff in the region’s retailers, tumbling 6.5 percent after profit missed estimates. BP Plc gained 3.9 percent after the Associated Press cited Steve Scalise, a Louisiana Republican Congressman, as saying a possible settlement with the energy company over the Gulf of Mexico spill was under discussion. A U.S. Justice Department official said no talks were under way.
BP’s $3.5 billion of bonds, its first debt sale since a rig explosion in April, rose on their first day of trading, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
The S&P 500 drifted between gains and losses after a 0.5 percent advance yesterday. The gauge has rallied 9.1 percent since the end of August, poised for its best month since April 2009 and its biggest September rally since 1939.
HP Beats Estimates
Hewlett-Packard Co. advanced 2.2 percent today in the U.S. after the world’s largest computer maker predicted earnings and sales that exceeded estimates and said it will return cash to shareholders.
The MSCI China Index advanced 1.5 percent, helping lead gains among equity gauges in major emerging markets, after a purchasing managers’ index released today by HSBC Holdings Plc and Markit Economics rose to the highest level in five months. Developing-nation currencies appreciated, led by a 0.9 percent gain in the Turkish lira and an advance in the Taiwan dollar to its strongest level versus the U.S. currency since August 2008.
China currency legislation will pass the U.S. House today with bipartisan support, the measure’s sponsors said after a committee approved the bill for consideration. The vote later today in Washington will be the first for the House on a bill aimed at prodding China to raise the value of its currency after years of debating the issue.
Copper, Gold, Silver
Copper for delivery in three months gained 1.4 percent to $8,064 a metric ton on the London Metal Exchange. China is the world’s largest buyer of copper. Crude oil futures for November delivery rallied 2.3 percent to $77.90 a barrel. Gold futures rose to a record $1,314.80 an ounce, and silver climbed above $22 an ounce for the first time since 1980.
Spanish 10-year bond yields rose 2 basis points to 4.20 percent and the yield premium relative to benchmark German bunds, known as the yield spread, widened to 196 basis points, after earlier increasing to the widest since July 15. The Irish- German spread retreated after earlier widening to a record 454 basis points, or 4.54 percentage points.
Five of eight money managers surveyed by Bloomberg predicted Spain’s credit rating at Moody’s would be reduced by one step to Aa1, with the rest forecasting a two-level cut to Aa2. The decision may come this week after the New York-based rating company placed the nation’s debt on review for a possible downgrade on June 30, saying it would conclude the analysis within three months. The managers oversee about $700 billion between them.
Spanish Strikes
Spain’s two biggest unions said 72 percent of workers joined the first general strike in eight years, including 65 percent in the energy sector and 82 percent in the airline industry, according to Jose Javier Cubillo of the UGT union. Labor Minister Celestino Corbacho said 7.5 percent of state workers joined the strike this morning.
More than 100,000 protesters descended on Brussels before a meeting between union members and European Commission President Jose Barroso, organizers said. In Athens, rail, communications and port workers struck. Police in Dublin made an arrest after a truck damaged the front gates of the parliament building.
To contact the reporters on this story: Michael P. Regan in New York at mregan12@bloomberg.net; Paul Armstrong in London at parmstrong10@bloomberg.net.
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net.
http://jodnet.blogspot.com
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