By Stephen Kirkland - Nov 8, 2011 7:33 PM GMT+0700
European stocks rose for the first time in three days and U.S. index futures gained on earnings that beat analysts’ estimates and as Italian lawmakers prepare to vote on Prime Minister Silvio Berlusconi’s budget. Commodities advanced for a fifth day, led by energy.
The Stoxx Europe 600 Index climbed 1.5 percent at 7:32 a.m. in New York. Standard & Poor’s 500 futures added 0.4 percent. The S&P GSCI index of 24 commodities increased 0.5 percent as New York oil jumped to a three-month high. The German 10-year bund yield rose four basis points, gaining for the first day in three, with the French yield two basis points higher.
Vodafone Group Plc (VOD) boosted its full-year earnings forecast and Marks & Spencer Group Plc said expenses will rise less than earlier predicted. The vote in Rome today will test Berlusconi’s majority in parliament and determine if he has enough support to stay in power and implement austerity measures. The European Central Bank’s Juergen Stark said yesterday the debt crisis will be controlled within two years and Germany’s Federal Statistics Office reported an unexpected increase in exports today.
“If Berlusconi leaves, it’ll cause some political unrest, but most likely also a sigh of relief in the markets,” wrote Lars Moegeltoft, a chief equity adviser at Nordea Private Banking in Copenhagen, in a note to clients.
About five shares advanced for every one that declined in the Stoxx 600, helping the gauge rebound from a two-day, 1.6 percent loss. Vodafone, the world’s largest mobile-phone operator, gained 3.1 percent, the most since September. Marks & Spencer, the U.K.’s largest clothing retailer, climbed 1.9 percent. Lloyds Banking Group Plc and Societe Generale SA rallied more than 5 percent after also reporting results.
Priceline.com
S&P 500 futures erased earlier losses of as much as 0.7 percent. Priceline.com Inc., the biggest U.S. online travel agency by stock market value, gained 2.1 percent in Germany after saying fourth-quarter sales will rise 27 percent to 32 percent from a year earlier.
The Dutch 10-year yield increased one basis point as the Netherlands sold 1.99 billion euros, compared with a maximum target of 2.5 billion euros, of July 2021 bonds. The Italian two-year yield declined four basis points, with the 10-year yield two basis points lower after rising to 6.74 percent, the most since before the euro was introduced in 1999.
Bond Risk
The cost of insuring sovereign debt fell for a second day, with the Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments dropping three basis points to 323.
The yield on the 10-year U.S. Treasury note slipped one basis point to 2.03 percent. The government auctions $32 billion of three-year notes, the first of three sales this week totaling $72 billion.
The pound strengthened against most of its 16 major peers monitored by Bloomberg after a report showed U.K. manufacturing production rose for the first time in four months in September, led by transport equipment and metals.
New York oil climbed as much as 1.1 percent to $96.60 a barrel, the highest since Aug. 1, on shrinking crude stockpiles in the U.S. Copper climbed for the first day in three as stockpiles in warehouses monitored by the London Metal Exchange fell to an eight-month low. The GSCI index earlier today rose to the highest level since Sept. 9.
The MSCI Emerging Markets Index slipped 0.1 percent. South Korean chipmakers including Samsung Electronics Co. retreated as prices for dynamic random access memory declined for a fourth day. Mol Nyrt., Hungary’s largest oil refiner, jumped 3.4 percent after its exploration partner in Iraq boosted its estimate for oil in the Shaikan discovery. The benchmark BUX Index in Budapest advanced 1.4 percent, and Poland’s WIG20 gained 0.6 percent.
To contact the reporter on this story: Stephen Kirkland in London at skirkland@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
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