Stocks rose, sending the benchmark global index to a six-month high after China announced record currency reserves, the Federal Reserve signaled it will protect the economic recovery and Intel Corp. forecast higher sales. Oil advanced as the yen and bonds fell.
The MSCI World Index advanced 1 percent at 9:48 a.m. in New York, its highest level since April 27. The Standard & Poor’s 500 Index added 0.6 percent. The yen weakened against all 16 of its most-traded counterparts. The yield on the German 10-year bund climbed four basis points, while the U.S. Treasury yield rose three basis points. Oil rallied 1.4 percent to $82.78 a barrel, copper climbed to a 27-month high and tin gained to a record.
China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion, reinforcing optimism the country will continue to lead the global recovery. The Fed said in minutes published yesterday it was prepared to ease monetary policy “before long.” Intel’s sales forecast topped analysts’ estimates.
“The quantitative-easing story is playing itself out in the burst of inflows into the emerging markets through to gold, oil and in equity performance,” said Simon Derrick, chief currency strategist in London at Bank of New York Mellon Corp. “The likelihood of further monetary policy easing is bolstering risk appetite and the flight away from currencies. There’s declining appetite for holding cash.”
Fresnillo, ASML
The Stoxx Europe 600 Index gained 1.2 percent as mining companies rallied. Fresnillo Plc, the world’s largest primary silver producer, rose 3.1 percent after third-quarter output increased to a record. ASML Holding NV climbed 4.4 percent after Europe’s biggest maker of semiconductor equipment posted better- than-estimated profit. TGS Nopec Geophysical Company ASA and CGGVeritas jumped more than 6 percent, leading a rally in oil exploration-industry shares after the U.S. lifted its moratorium on deep-water offshore drilling.
The MSCI Asia Pacific Index advanced 0.7 percent. Japan’s machinery orders unexpectedly rose 10.1 percent and Australia’s consumer confidence rebounded 3.3 percent. The MSCI Emerging Markets Index advanced 1.2 percent, heading for the highest closing level since June 2008. India’s Bombay Stock Exchange Sensitive Index jumped 2.4 percent, the most since May, as Infosys Technologies Ltd. rallied to a record high.
CSX Earnings
The S&P 500 extend this week’s advance. CSX Corp., the second-largest publicly traded U.S. railroad, gained 4.5 percent after third-quarter profit topped analyst estimates. Equity futures held gains even after prices of goods imported into the U.S. fell in September. The 0.3 percent decrease in the import- price index exceeded the median forecast of economists surveyed by Bloomberg News and followed a 0.6 percent gain in August, Labor Department figures showed today in Washington. Prices excluding fuel climbed 0.3 percent, led by industrial supplies like metals and chemicals.
The yield on 30-year Treasuries rose to a record relative to 10-year notes amid speculation the Fed will buy medium-term debt to keep borrowing costs down. The difference reached 1.40 percentage points, the most since Bloomberg began tracking the data in 1977. The government sells $21 billion of 10-year notes today and $13 billion of 30-year securities tomorrow.
German Bond Sale
Germany sold 4.18 billion euros of 2.25 percent 10-year bonds at an average yield of 2.29 percent, the debt agency said today. Investors bid for 1.4 times the securities offered, down from an average 1.6 so-called bid-to-cover ratio over the previous three sales.
The cost of insuring Standard Chartered Plc’s debt from default fell to the lowest level in two months on speculation its plan to raise about 3.3 billion pounds ($5.2 billion) of equity means the bank won’t have to sell as many bonds to boost its capital. The credit-default swaps fell 2.5 basis points to 78.5, according to data provider CMA, and the shares sank 2.2 percent.
Standard Chartered’s 1.25 billion euros of 3.625 percent senior unsecured notes due 2015 rose, pushing the yield versus benchmark government debt seven basis points lower to 131, according to HSBC Holdings Plc prices on Bloomberg.
The yen weakened 0.4 percent to 114.24 per euro, and depreciated 0.1 percent to 81.80 against the dollar. The U.S. currency declined 0.1 percent to $1.3935 per euro. The Dollar Index, which tracks the currency against those of six trading partners, slipped 0.2 percent.
Copper for delivery in December climbed 0.7 percent to $3.8160 a pound on the Comex in New York. The contract touched $3.8385, the highest price since July 8, 2008. China is the world’s largest buyer of copper. Tin rose 2.3 percent to an all- time high of $27,100 a ton. Gold for December settlement advanced 0.9 percent to $1,359.10 an ounce, approaching last week’s record $1,366 an ounce.
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China’s foreign-exchange reserves increased by a record to $2.65 trillion at the end of September while a 25 percent jump in exports lifted its trade surplus to $16.9 billion, reinforcing optimism the country will continue to lead the global recovery. The Fed said in minutes published yesterday it was prepared to ease monetary policy “before long.” Intel’s sales forecast topped analysts’ estimates.
“The quantitative-easing story is playing itself out in the burst of inflows into the emerging markets through to gold, oil and in equity performance,” said Simon Derrick, chief currency strategist in London at Bank of New York Mellon Corp. “The likelihood of further monetary policy easing is bolstering risk appetite and the flight away from currencies. There’s declining appetite for holding cash.”
Fresnillo, ASML
The Stoxx Europe 600 Index gained 1.2 percent as mining companies rallied. Fresnillo Plc, the world’s largest primary silver producer, rose 3.1 percent after third-quarter output increased to a record. ASML Holding NV climbed 4.4 percent after Europe’s biggest maker of semiconductor equipment posted better- than-estimated profit. TGS Nopec Geophysical Company ASA and CGGVeritas jumped more than 6 percent, leading a rally in oil exploration-industry shares after the U.S. lifted its moratorium on deep-water offshore drilling.
The MSCI Asia Pacific Index advanced 0.7 percent. Japan’s machinery orders unexpectedly rose 10.1 percent and Australia’s consumer confidence rebounded 3.3 percent. The MSCI Emerging Markets Index advanced 1.2 percent, heading for the highest closing level since June 2008. India’s Bombay Stock Exchange Sensitive Index jumped 2.4 percent, the most since May, as Infosys Technologies Ltd. rallied to a record high.
CSX Earnings
The S&P 500 extend this week’s advance. CSX Corp., the second-largest publicly traded U.S. railroad, gained 4.5 percent after third-quarter profit topped analyst estimates. Equity futures held gains even after prices of goods imported into the U.S. fell in September. The 0.3 percent decrease in the import- price index exceeded the median forecast of economists surveyed by Bloomberg News and followed a 0.6 percent gain in August, Labor Department figures showed today in Washington. Prices excluding fuel climbed 0.3 percent, led by industrial supplies like metals and chemicals.
The yield on 30-year Treasuries rose to a record relative to 10-year notes amid speculation the Fed will buy medium-term debt to keep borrowing costs down. The difference reached 1.40 percentage points, the most since Bloomberg began tracking the data in 1977. The government sells $21 billion of 10-year notes today and $13 billion of 30-year securities tomorrow.
German Bond Sale
Germany sold 4.18 billion euros of 2.25 percent 10-year bonds at an average yield of 2.29 percent, the debt agency said today. Investors bid for 1.4 times the securities offered, down from an average 1.6 so-called bid-to-cover ratio over the previous three sales.
The cost of insuring Standard Chartered Plc’s debt from default fell to the lowest level in two months on speculation its plan to raise about 3.3 billion pounds ($5.2 billion) of equity means the bank won’t have to sell as many bonds to boost its capital. The credit-default swaps fell 2.5 basis points to 78.5, according to data provider CMA, and the shares sank 2.2 percent.
Standard Chartered’s 1.25 billion euros of 3.625 percent senior unsecured notes due 2015 rose, pushing the yield versus benchmark government debt seven basis points lower to 131, according to HSBC Holdings Plc prices on Bloomberg.
The yen weakened 0.4 percent to 114.24 per euro, and depreciated 0.1 percent to 81.80 against the dollar. The U.S. currency declined 0.1 percent to $1.3935 per euro. The Dollar Index, which tracks the currency against those of six trading partners, slipped 0.2 percent.
Copper for delivery in December climbed 0.7 percent to $3.8160 a pound on the Comex in New York. The contract touched $3.8385, the highest price since July 8, 2008. China is the world’s largest buyer of copper. Tin rose 2.3 percent to an all- time high of $27,100 a ton. Gold for December settlement advanced 0.9 percent to $1,359.10 an ounce, approaching last week’s record $1,366 an ounce.
http://jodnet.blogspot.com
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