| Bloomberg | - |
European
stocks rose and Spanish bonds declined on signs of accelerating
inflation in the 17-nation currency bloc. The euro climbed to a
five-year high against the yen, while the pound advanced as the Bank of
England said it would end incentives for ...
Stocks Rise With Euro on Inflation Rebound
By Rachel Evans & Paul Dobson -
Nov 28, 2013 11:31 AM PT
European stocks rose and Spanish
bonds declined on signs of accelerating inflation in the 17-nation currency bloc. The euro climbed to a five-year high
against the yen, while the pound advanced as the Bank of England
said it would end incentives for mortgage lending.
Most Brazilian stocks fell by 2:03 p.m in New York as the government posted a budget surplus that trailed analysts’ forecasts, fueling growth concerns. The Stoxx Europe 600 Index gained 0.4 percent to a five-year high, and the yield on Spain’s five-year notes rose six basis points to 2.66 percent. Canadian stocks advanced a second day as gold producers gained. The pound touched its strongest level since January while the yen fell as much as 0.3 percent to 139.18 per euro.
Germany’s annual inflation rate, calculated using a
harmonized European Union method, rose to 1.6 percent this month
from 1.2 percent in October, damping bets the European Central
Bank will loosen monetary policy. Bank of England Governor Mark Carney said allowances under Britain’s Funding for Lending
Scheme will only apply to business lending from 2014. U.S. stock
and bond markets are shut for Thanksgiving.
“The more resilient German inflation is, the higher the hurdle is for more easing from the ECB,” said Eimear Daly, a currency-market analyst at Monex Europe Ltd. in London. “The inflation number from Saxony significantly boosted the euro.”
The Standard & Poor’s/TSX Composite Index added 0.2 percent in Toronto as Detour Gold Corp. climbed 15 percent and Iamgold Corp. rose 3.4 percent. Gold advanced 0.5 percent.
The MSCI Emerging Markets Index rose, with Dubai’s benchmark index setting its highest close in five years.
DHX Media jumped as much as 38 percent in Toronto after agreeing to buy Family Channel, Disney XD and other channels from Bell Media, a unit of BCE, for about C$170 million in cash.
Thomas Cook Group Plc (TCG) rose 15 percent today after the travel operator posted a 49 percent increase in full-year profit. Rio Tinto Group, the world’s second-biggest miner, added 3.9 percent after saying it will cost $3 billion less than projected to increase iron ore output capacity.
Vale SA, the world’s biggest iron-ore producer, jumped 2.4 percent in Sao Paulo, the most in six weeks on a closing basis. The company agreed to pay 22.3 billion reais ($9.6 billion) to settle a decade-long tax dispute with Brazil over profits at its foreign units, ahead of a deadline tomorrow.
A gauge of U.K. homebuilders fell 1.6 percent after the Bank of England’s announcement. Barratt Developments Plc lost 4.9 percent and Persimmon Plc slid 6.1 percent.
Spain’s 10-year bond yield was little changed at 4.15 percent. The rate on similar-maturity German debt slipped to 1.7 percent.
Germany’s 10-year break-even rate, a gauge of inflation expectations that measures the yield difference between bunds and index-linked securities, rose two basis points to 1.44 percentage points after closing at 1.42 percentage points yesterday, the least since May 2012.
The cost of insuring against losses on corporate bonds touched the lowest since April 2010. The Markit iTraxx Europe Index of credit-default swaps on 125 investment-grade companies fell to as low as 76 basis points.
Exporters led gains in Asian stocks after U.S. data yesterday showed jobless claims in the world’s largest economy fell while consumer sentiment exceeded estimates.
“Asia’s earnings growth does remain largely leveraged to the global economy,” Michael Kurtz, the Hong Kong-based head of global equity strategy at Nomura Holdings Inc., said in an e-mail. “Our economists expect the U.S. economy finally to accelerate to a more robust pace in 2014.”
The MSCI Emerging Markets Index increased 0.4 percent. Dubai’s DFM General Index (DFMGI) jumped 1.6 percent after the emirate won the right to host the World Expo 2020.
Japan’s Nikkei 225 rose 1.8 percent, the most in a week, as Honda Motor Co., which gets more than 80 percent of its sales outside Japan, advanced 1.5 percent.
The yen weakened against 15 of its 16 major counterparts. The euro added 0.2 percent to $1.3601. Sterling jumped as much as 0.4 percent to $1.6339.
The Aussie snapped its longest losing streak versus the U.S. currency since May, rising 0.3 percent to 91.09 U.S. cents. Capital spending increased 3.6 percent from the second quarter, compared with the median forecast for a 1.2 percent drop in a Bloomberg News survey.
Gold for immediate delivery reached $1,253.80 an ounce. The precious metal is still 5.9 percent lower for November, a third consecutive monthly decline. Platinum gained 0.7 percent to $1,362.20 an ounce.
Crude oil fell less than 0.1 percent in electronic trading in New York to $92.25 a barrel as stockpiles rose for a 10th week in the U.S., the biggest oil consumer.
To contact the reporters on this story: Rachel Evans in Hong Kong at revans43@bloomberg.net; Paul Dobson in London at pdobson2@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
Most Brazilian stocks fell by 2:03 p.m in New York as the government posted a budget surplus that trailed analysts’ forecasts, fueling growth concerns. The Stoxx Europe 600 Index gained 0.4 percent to a five-year high, and the yield on Spain’s five-year notes rose six basis points to 2.66 percent. Canadian stocks advanced a second day as gold producers gained. The pound touched its strongest level since January while the yen fell as much as 0.3 percent to 139.18 per euro.
Economic confidence in the
euro-area rose more than analysts forecast in November, with an index of
executive and consumer sentiment increasing to 98.5 from 97.7 in
October, the European Commission in Brussels said today. Photographer:
Chris Ratcliffe/Bloomberg
Nov. 27 (Bloomberg) --
Former Federal Reserve Chairman Alan Greenspan said the U.S. economy
probably will grow more slowly next year than some forecasters predict
and indicated that a record U.S. stock market isn’t in a bubble.
He spoke in an interview on Bloomberg Television's "Political
Capital with Al Hunt" airing this weekend. Angie Lau reports on
Bloomberg TV's "First Up." (Excerpt. Source: Bloomberg)
Nov. 28 (Bloomberg) --
Thomas Murphy, managing partner at Family Office Research &
Management Ltd. in Sydney, a private wealth management firm, talks about
global financial markets and investment strategy.
He speaks with Angie Lau on Bloomberg Television's "First Up."
(Source: Bloomberg)
Nov. 26 (Bloomberg) --
Kelvin Tay, Singapore-based chief investment officer for southern
Asia-Pacific at UBS AG’s wealth management unit, talks about China's
stocks, local currency and government's economic policies.
He also talks about India stocks with Haslinda Amin on Bloomberg
Television's "Asia Edge." (Source: Bloomberg)
Pedestrians cross a road in front
of an electronic stock board outside a securities firm in Tokyo.
Photographer: Tomohiro Ohsumi/Bloomberg
“The more resilient German inflation is, the higher the hurdle is for more easing from the ECB,” said Eimear Daly, a currency-market analyst at Monex Europe Ltd. in London. “The inflation number from Saxony significantly boosted the euro.”
The Standard & Poor’s/TSX Composite Index added 0.2 percent in Toronto as Detour Gold Corp. climbed 15 percent and Iamgold Corp. rose 3.4 percent. Gold advanced 0.5 percent.
The MSCI Emerging Markets Index rose, with Dubai’s benchmark index setting its highest close in five years.
Rio Rally
The Stoxx 600 has added 0.9 percent in November, on pace for a third monthly gain. It advanced 16 percent this year.DHX Media jumped as much as 38 percent in Toronto after agreeing to buy Family Channel, Disney XD and other channels from Bell Media, a unit of BCE, for about C$170 million in cash.
Thomas Cook Group Plc (TCG) rose 15 percent today after the travel operator posted a 49 percent increase in full-year profit. Rio Tinto Group, the world’s second-biggest miner, added 3.9 percent after saying it will cost $3 billion less than projected to increase iron ore output capacity.
Vale SA, the world’s biggest iron-ore producer, jumped 2.4 percent in Sao Paulo, the most in six weeks on a closing basis. The company agreed to pay 22.3 billion reais ($9.6 billion) to settle a decade-long tax dispute with Brazil over profits at its foreign units, ahead of a deadline tomorrow.
A gauge of U.K. homebuilders fell 1.6 percent after the Bank of England’s announcement. Barratt Developments Plc lost 4.9 percent and Persimmon Plc slid 6.1 percent.
Inflation Expectations
Economic confidence in the euro-area rose more than analysts forecast in November, with an index of executive and consumer sentiment increasing to 98.5 from 97.7 in October, the European Commission in Brussels said today. Consumer prices rose in Spain in November, separate data showed.Spain’s 10-year bond yield was little changed at 4.15 percent. The rate on similar-maturity German debt slipped to 1.7 percent.
Germany’s 10-year break-even rate, a gauge of inflation expectations that measures the yield difference between bunds and index-linked securities, rose two basis points to 1.44 percentage points after closing at 1.42 percentage points yesterday, the least since May 2012.
The cost of insuring against losses on corporate bonds touched the lowest since April 2010. The Markit iTraxx Europe Index of credit-default swaps on 125 investment-grade companies fell to as low as 76 basis points.
S&P Futures
Futures (SPX) on the Standard & Poor’s 500 Index expiring next month climbed 0.2 percent after the index rose yesterday to a record. The gauge of U.S. equities has rallied 2.9 percent this month, bringing its advance for the year to 27 percent. It’s on pace for the biggest annual jump since 1997.Exporters led gains in Asian stocks after U.S. data yesterday showed jobless claims in the world’s largest economy fell while consumer sentiment exceeded estimates.
“Asia’s earnings growth does remain largely leveraged to the global economy,” Michael Kurtz, the Hong Kong-based head of global equity strategy at Nomura Holdings Inc., said in an e-mail. “Our economists expect the U.S. economy finally to accelerate to a more robust pace in 2014.”
The MSCI Emerging Markets Index increased 0.4 percent. Dubai’s DFM General Index (DFMGI) jumped 1.6 percent after the emirate won the right to host the World Expo 2020.
Weak Yen
Indonesia’s rupiah weakened 1.1 percent versus the dollar to its lowest closing level in 4 1/2 years.Japan’s Nikkei 225 rose 1.8 percent, the most in a week, as Honda Motor Co., which gets more than 80 percent of its sales outside Japan, advanced 1.5 percent.
The yen weakened against 15 of its 16 major counterparts. The euro added 0.2 percent to $1.3601. Sterling jumped as much as 0.4 percent to $1.6339.
The Aussie snapped its longest losing streak versus the U.S. currency since May, rising 0.3 percent to 91.09 U.S. cents. Capital spending increased 3.6 percent from the second quarter, compared with the median forecast for a 1.2 percent drop in a Bloomberg News survey.
Gold Gains
Brazil’s central bank raised its benchmark interest rate to 10 percent from 9.5 percent yesterday, in line with analyst estimates, as a weaker currency and widening budget deficit spur inflation. The real climbed 05 percent against the dollar, ending a three-day drop, while swap rates sank. The Treasury said today the government’s primary surplus was 5.4 billion reais in October, trailing the median estimate among analysts for an 8 billion-real surplus.Gold for immediate delivery reached $1,253.80 an ounce. The precious metal is still 5.9 percent lower for November, a third consecutive monthly decline. Platinum gained 0.7 percent to $1,362.20 an ounce.
Crude oil fell less than 0.1 percent in electronic trading in New York to $92.25 a barrel as stockpiles rose for a 10th week in the U.S., the biggest oil consumer.
To contact the reporters on this story: Rachel Evans in Hong Kong at revans43@bloomberg.net; Paul Dobson in London at pdobson2@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
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