Most European stocks rose, German bonds gained and gold fell for a third day, approaching a three-week low. Emerging-market currencies weakened after US data damped optimism for extended Federal Reserve stimulus and a typhoon swept across the Philippines.
The Stoxx Europe 600 Index added 0.2 per cent to 323.21 at 6:15 am in New York. Standard & Poor’s 500 Index futures gained less than 0.1 per cent, erasing earlier losses. The Germany’s 10-year bond yield dropped two basis points to 1.74 per cent. The Indian rupee sank 1.3 per cent. The Philippine peso lost 0.9 per cent and stocks in the nation fell the most in six weeks. Gold slid 0.3 per cent to $1,284.59 an ounce. Brent rose for a second day after talks to curb Iran’s nuclear programme ended without a resolution.
US payrolls rose by almost twice as much as economists projected, according to a Labor Department report on November 8. Data the following day showed China’s industrial production unexpectedly accelerated. Super Typhoon Haiyan headed for Vietnam after killing as many as 10,000 people in the Philippines.
“Markets are going to be worried about how quickly the US is going to start removing some of its stimulus program, but I think overall economic data are being supportive of equity markets,” said Stephen Halmarick, head of investment markets research in Sydney at Colonial First State Global Asset Management, which oversees about $160 billion.
BSkyB slides
More than two shares gained for each one that fell in the Stoxx 600, which has risen for the past five weeks. Volume was 13 per cent below the 30-day average. Lonmin Plc rallied 6.7 per cent as the world’s third-largest platinum producer reported profit that exceeded analyst estimates.
British Sky Broadcasting Group Plc, which has aired top English soccer games since the Premier League’s inception in 1992, retreated 11 percent for the biggest drop in two years as BT Group Plc (BT/A) won the rights to broadcast UEFA’s Champions League and Europa League tournaments.
RSA Insurance Group Plc sank 9.9 per cent after suspending three top executives at its Irish unit and saying 2013 results will miss projections.
The Philippine Stock Exchange Index fell 1.4 per cent, the most since September 30. The peso traded at 43.585 per dollar, the lowest since September 17 on a closing basis.
Typhoon Haiyan was located 156 kilometres (97 miles) east-southeast of Hanoi, according to the US Navy Joint Typhoon Warning Center at Pearl Harbor. Vietnam’s VN Index gained 0.5 per cent.
The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong rose for the first time in five days, adding 1.9 per cent. China’s industrial production increased 10.3 per cent last month from a year earlier, the nation’s statistics bureau said November 9, exceeding the 10 percent median estimate in a Bloomberg survey of economists.
Thai protests
The Thai baht dropped 0.4 per cent per dollar. Police tightened security around the nation’s parliament on concern protesters will gather during an amnesty vote on Monday.
“Some local factors like the typhoon and the political problems are short-term negatives,” said Yuji Kameoka, chief currency strategist in Tokyo at Daiwa Securities Co, Japan’s second-largest brokerage. “The improved US data boosted appetite for the dollar as that probably led to some speculation the Fed’s tapering will begin sooner.”
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 major currencies excluding the yen, fell 0.3 per cent to the lowest level since October 1. The US currency was little changed against the yen, at 99.08. It slipped less than 0.2 per cent to $1.3390 per euro.
Fed stimulus
Economists still forecast the Fed will delay tapering asset purchases until March even after non-farm payrolls data beat forecasts. Policy makers will probably pare the monthly pace of bond buying to $70 billion at their March 18-19 meeting from the current pace of $85 billion, according to the median of 32 estimates in a Bloomberg survey November 8. The median forecast in an October 17-18 survey of 40 economists also called for a cut to $70 billion in March.
The S&P GSCI gauge of 24 commodities advanced 0.2 per cent, as Brent, gasoline and natural gas climbed. International Atomic Energy Agency chief Yukiya Amano is leading inspectors to Tehran for negotiations after Iran’s talks in Geneva with the United Nations Security Council and Germany ended without an agreement on curbs to Iran’s nuclear program, keeping supply limits of oil from Iran.
Brent Gains
Brent crude advanced 0.5 percent to $105.66 a barrel. U.S. natural gas gained 0.2 percent, the fifth consecutive advance and the longest streak since March. Colder-than-normal weather will blanket Chicago to New York through Nov. 17, according to the U.S. Climate Prediction Center in College Park, Maryland. About 49 percent of U.S. households use natural gas for heating, government data show.
The euro strengthened 0.2 percent to $1.3394. Italy’s 10-year yield dropped two basis points to 4.12 percent and Spain’s declined two basis points to 4.09 percent. The U.S. government bond market was closed for Veteran’s Day.
Portugal’s government bonds rose after the nation’s rating outlook was revised to stable from negative by Moody’s Investors Service on Nov. 8 amid an improving fiscal position and economic outlook. The 10-year yield fell 10 basis points to 5.85 percent, after reaching 5.79 percent last week, the lowest since June.