Stocks and U.S. futures rose and the yen weakened after the Group of Seven industrialized nations did nothing to damp optimism central banks will step in to support economies. Corn, soybeans and sugar advanced.
The Stoxx Europe 600 Index increased 0.3 percent at 7:50 a.m. in New York. Standard & Poor’s 500 Index futures added 0.3 percent. The yen depreciated against all but four of its 16 most-traded counterparts. Corn rallied 7.4 percent, soybeans jumped 3.6 percent and sugar gained 2.8 percent. The extra yield investors demand to hold Greek 10-year bonds instead of benchmark German bunds was 727 basis points, down from 752 basis points at the end of last week.
The Federal Reserve will buy as much as $65 billion in Treasuries a month as it attempts to stem job losses, Mansoor Mohi-uddin, head of global currency strategy at UBS AG, wrote in a report today. Leaders of the world economy failed to narrow differences over currencies in weekend meetings, turning to the International Monetary Fund to calm frictions. China was accused of undervaluing the yuan, while low interest rates in the U.S. and industrialized nations were blamed for flooding emerging markets with capital.
“Further quantitative easing will boost short-term liquidity, which should find its way into financial markets,” said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management in Sydney. “It should also support broader economic activity in the longer term.”
Two stocks rose for every one that fell in the Stoxx 600. Ladbrokes Plc advanced 2.9 percent as the U.K. bookmaker founded in 1886 said third-quarter operating profit more than doubled. Fertilizer makers Yara International ASA and Syngenta AG climbed more than 2 percent as corn and soybean futures rallied.
Chesapeake Energy
The increase in U.S. futures indicated the S&P 500 will extend last week’s 1.7 percent rally. Chesapeake Energy Corp. gained 2.8 percent in pre-market trading as China’s Cnooc Ltd. agreed to pay $1.08 billion for a one-third stake in the U.S. company’s Eagle Ford shale project in Texas. Intel Corp., JPMorgan Chase & Co. and Google Inc. are among companies in the benchmark index due to report results this week.
The MSCI Emerging Markets Index advanced for the first time in three days, climbing 0.6 percent. Turkey’s ISE National 100 Index rose 2.1 percent to a record after the government said it will cut its deficit more than earlier planned. Russia’s Micex Index increased 0.9 percent. The Shanghai Composite index jumped 2.5 percent. The gains came before Reuters reported China’s central bank unexpectedly raised reserve requirements for six large commercial lenders.
Bond Risk Falls
The yield on the 10-year Greek bond tumbled 20 basis points to 9.64 percent after IMF Managing Director Dominique Strauss- Kahn said the institution is prepared to give the country more time to repay its loan should European nations, which provided the bulk of a joint 110 billion-euro ($153 billion) package, decide to do so first.
The cost of protecting against a default by Greece fell 36 basis points to 695, the lowest since May 31, according to data provider CMA. The Markit iTraxx SovX Western Europe Index of default swaps on 15 governments dropped about 2 basis points to 144, CMA said.
The Treasury market was closed for a U.S. holiday.
New York Fed President William Dudley, who has voiced support for more government bond purchases, will speak in Washington later today.
Grains led commodities higher, pushing the S&P GSCI index of 24 raw materials to a two-year high. Corn futures jumped as much as 8.5 percent, the most allowed by the Chicago Board of Trade, after the U.S. Department of Agriculture’s reduced crop forecast Oct. 9. Soybeans advanced to the highest level since June 2009, and sugar reached the highest price since Feb. 12.
The yen weakened 0.1 percent to 82.01 per dollar after appreciating earlier to 81.39, the strongest in 15 years, and fell 0.1 percent against the euro to 114.32. The dollar was unchanged at $1.3939 per euro, after depreciating to $1.4012, near the lowest level since January.
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The Stoxx Europe 600 Index increased 0.3 percent at 7:50 a.m. in New York. Standard & Poor’s 500 Index futures added 0.3 percent. The yen depreciated against all but four of its 16 most-traded counterparts. Corn rallied 7.4 percent, soybeans jumped 3.6 percent and sugar gained 2.8 percent. The extra yield investors demand to hold Greek 10-year bonds instead of benchmark German bunds was 727 basis points, down from 752 basis points at the end of last week.
The Federal Reserve will buy as much as $65 billion in Treasuries a month as it attempts to stem job losses, Mansoor Mohi-uddin, head of global currency strategy at UBS AG, wrote in a report today. Leaders of the world economy failed to narrow differences over currencies in weekend meetings, turning to the International Monetary Fund to calm frictions. China was accused of undervaluing the yuan, while low interest rates in the U.S. and industrialized nations were blamed for flooding emerging markets with capital.
“Further quantitative easing will boost short-term liquidity, which should find its way into financial markets,” said Prasad Patkar, who helps manage about $1.8 billion at Platypus Asset Management in Sydney. “It should also support broader economic activity in the longer term.”
Two stocks rose for every one that fell in the Stoxx 600. Ladbrokes Plc advanced 2.9 percent as the U.K. bookmaker founded in 1886 said third-quarter operating profit more than doubled. Fertilizer makers Yara International ASA and Syngenta AG climbed more than 2 percent as corn and soybean futures rallied.
Chesapeake Energy
The increase in U.S. futures indicated the S&P 500 will extend last week’s 1.7 percent rally. Chesapeake Energy Corp. gained 2.8 percent in pre-market trading as China’s Cnooc Ltd. agreed to pay $1.08 billion for a one-third stake in the U.S. company’s Eagle Ford shale project in Texas. Intel Corp., JPMorgan Chase & Co. and Google Inc. are among companies in the benchmark index due to report results this week.
The MSCI Emerging Markets Index advanced for the first time in three days, climbing 0.6 percent. Turkey’s ISE National 100 Index rose 2.1 percent to a record after the government said it will cut its deficit more than earlier planned. Russia’s Micex Index increased 0.9 percent. The Shanghai Composite index jumped 2.5 percent. The gains came before Reuters reported China’s central bank unexpectedly raised reserve requirements for six large commercial lenders.
Bond Risk Falls
The yield on the 10-year Greek bond tumbled 20 basis points to 9.64 percent after IMF Managing Director Dominique Strauss- Kahn said the institution is prepared to give the country more time to repay its loan should European nations, which provided the bulk of a joint 110 billion-euro ($153 billion) package, decide to do so first.
The cost of protecting against a default by Greece fell 36 basis points to 695, the lowest since May 31, according to data provider CMA. The Markit iTraxx SovX Western Europe Index of default swaps on 15 governments dropped about 2 basis points to 144, CMA said.
The Treasury market was closed for a U.S. holiday.
New York Fed President William Dudley, who has voiced support for more government bond purchases, will speak in Washington later today.
Grains led commodities higher, pushing the S&P GSCI index of 24 raw materials to a two-year high. Corn futures jumped as much as 8.5 percent, the most allowed by the Chicago Board of Trade, after the U.S. Department of Agriculture’s reduced crop forecast Oct. 9. Soybeans advanced to the highest level since June 2009, and sugar reached the highest price since Feb. 12.
The yen weakened 0.1 percent to 82.01 per dollar after appreciating earlier to 81.39, the strongest in 15 years, and fell 0.1 percent against the euro to 114.32. The dollar was unchanged at $1.3939 per euro, after depreciating to $1.4012, near the lowest level since January.
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