By Claudia Carpenter - Jan 31, 2012 9:03 PM GMT+0700
Jan. 31 (Bloomberg) -- Sean Darby, global head of equity strategy at Jefferies Group Inc., talks about U.S. and emerging market stocks. He also discusses Europe's sovereign debt crisis and the U.S. economy. He speaks with Rishaad Salamat on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Jan. 31 (Bloomberg) -- Gao Ting, chief China strategist at UBS AG, talks about China's economy growth and stock market. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Jan. 31 (Bloomberg) -- Koji Endo, an auto analyst at Advanced Research Japan, talks about the nation's auto industry. Honda Motor Co. President Takanobu Ito forecast last week that business results at Japan’s third-biggest carmaker will climb to the highest in at least five years, led by sales of Accord sedans and Civic compacts in North America. Endo speaks from Tokyo with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Stocks (MXWD) climbed around the world, heading for the best start to a year since 1994, the euro strengthened and commodities gained after most countries in Europe agreed to tighter budget controls and Greece made progress on debt talks.
The MSCI All-Country World Index (MXWD) rose 0.6 percent at 9 a.m. in New York, taking its monthly gain to 6 percent. Standard & Poor’s 500 Index futures added 0.4 percent. The euro appreciated 0.2 percent to $1.3173, set for its first monthly advance since October. The Portuguese 10-year bond yield dropped 109 basis points after reaching a euro-era record yesterday, with the equivalent maturity Italian yield declining seven basis points. Oil jumped 1.3 percent and copper 0.7 percent.
European Union leaders, meeting in Brussels yesterday, completed a fiscal-discipline treaty that speeds sanctions on high-deficit states. Greek Prime Minister Lucas Papademos said he’s “strongly committed” to reaching a debt-swap pact with bondholders. U.S. consumer confidence strengthened this month and home prices in 20 U.S. cities fell at a slower pace in the year to November, economists said before reports today.
“The market was reassured overnight that Greece is making progress and the European Union is moving forward with financial sustainability,” said Sebastian Galy, a strategist at Societe Generale SA in London. “Central banks will continue to put more money into the financial system, which is a positive for most financial assets.”
Stoxx Europe
The Stoxx Europe 600 Index climbed 1 percent, extending this month’s gain to 4.3 percent. ARM Holdings Plc, whose chip designs are used in Apple Inc.’s iPad, rallied 4.9 percent after fourth-quarter revenue climbed. British Sky Broadcasting Group Plc advanced 3.3 percent as first-half operating profit topped analyst estimates.
The gain in S&P 500 futures indicated the U.S. equities gauge will snap a three-day decline. The S&P/Case-Shiller index of property values in 20 cities declined 3.7 percent from November 2010 after decreasing 3.4 percent in the year ended in October, the group said today in New York. Economists projected a 3.3 percent drop, according to the median estimate in a Bloomberg News survey.
The Conference Board’s consumer confidence index in January climbed to the highest level since February 2011, another report may show.
United Parcel Service Inc., the world’s largest package- delivery company, climbed 1.1 percent after forecasting a 2012 profit that exceeded analysts’ estimates as shipping demand increases. Exxon Mobil Corp. lost 1.2 percent after the world’s largest energy company reported fourth-quarter sales that trailed estimates as oil and natural-gas production declined.
Belgian Notes
The German 10-year bund yield rose two basis points, snapping a four-day decline, while the yield on the Greek 10- year bond yield jumped 26 basis points to 34.29 percent. The two-year Belgian note yield declined three basis points, dropping for the fifth consecutive day, after the government sold 2.58 billion euros of treasury bills.
The cost of insuring against a European sovereign default fell for the first time in three days. The Markit iTraxx SovX Western Europe Index of credit-default swaps on 15 governments dropped 0.3 basis point to 335.4.
The MSCI Emerging Markets Index (MXEF) gained 1.4 percent, heading for its best January since 2001. The index has risen 11 percent this month after falling 20 percent in 2011. The BSE India Sensitive Index (SENSEX), or Sensex, climbed 1.1 percent. Benchmark indexes in Russia, South Africa and Taiwan added more than 0.9 percent. In Taiwan, global funds bought $1.7 billion more stocks (MXWD) than they sold in January, the most in three months, exchange data showed.
Japan’s Production
Japan’s factory production rose 4 percent in December as manufacturers made up for disruptions caused by Thailand’s worst floods in 70 years, according to a trade ministry report today. The median estimate of 30 economists surveyed by Bloomberg was for a 3 percent gain.
Oil increased 1.3 percent to $100.02 a barrel in New York. Copper climbed to $8,500 a metric ton, set for a 12 percent jump for this month. Silver jumped 21 percent this month, the most since April.
The 17-nation euro strengthened 0.1 percent against the yen, after sliding to less than 100 yen yesterday for the first time in a week. The Dollar Index, which tracks the U.S. currency against those of six trading partners, fell for the fourth time in the past five days. The New Zealand dollar appreciated against all 16 major peers monitored by Bloomberg after a report showed home-building approvals rebounded.
To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
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