By Stephen Kirkland and Lynn Thomasson - Feb 15, 2012 9:32 PM GMT+0700
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Pedestrians are reflected in an electric stock board in Tokyo, Japan. Photographer: Tomohiro Ohsumi/Bloomberg
Feb. 15 (Bloomberg) -- Khiem Do, Hong Kong-based head of multi-asset strategy at Baring Asset Management Ltd., talks about the outlook for global stocks and his investment strategy. Do also discusses Europe's debt crisis. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Feb. 15 (Bloomberg) -- John Ricciardi, head of investment at Kestrel Partners LLP, talks about the European economy and his investment strategy. He speaks with Linzie Janis and Owen Thomas on Bloomberg Television's "Countdown." (Source: Bloomberg)
Feb. 15 (Source: Bloomberg) -- Andrew Su, chief executive officer of Compass Global Markets in Sydney, talks about the outlook for the European sovereign debt crisis and its implications for global financial markets. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Feb. 15 (Bloomberg) -- Andrew Colquhoun, Hong Kong-based head of Asia-Pacific sovereigns for Fitch Ratings, talks about the outlook for the European debt crisis and its implications for Asia. Colquhoun also discusses China's sovereign credit rating. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Stocks climbed and commodities rallied to a six-month high after China said it will get more involved in Europe’s bailout effort. European equities pared gains and the euro weakened on concern officials won’t be able to reach an agreement to give assistance to Greece.
The MSCI All-Country World Index (MXWD) added 0.6 percent at 9:30 a.m. in New York, following a 0.4 percent drop yesterday. The Standard & Poor’s 500 Index gained 0.2 percent. The euro slipped 0.2 percent to $1.3104. The cost of insuring against default on European government bonds gained for a sixth day. The S&P GSCI Index rose 0.8 percent as cocoa, silver and heating oil led gains among 18 of 24 commodities.
China, which holds the world’s largest currency reserves, can provide help through avenues including the central bank and its sovereign wealth fund, said People’s Bank of China Governor Zhou Xiaochuan. The euro-area economy shrank less than analysts anticipated last quarter, and earnings for BNP Paribas (BNP) SA and Heineken NV beat estimates. A Federal Reserve report showed manufacturing in the New York region expanded in February at the fastest pace since June 2010.
“China could make Europe’s problems go away,” said Peter Jolly, head of market research at National Australia Bank Ltd. in Sydney. “They have the funds. To the extent that China will participate in the European solution, it takes away some of the flight to quality in Treasuries.”
Increasing Pressure
European finance ministers are increasing pressure on Greece to deliver budget cuts in exchange for a 130 billion euros ($171 billion) rescue package. The ministers canceled a Brussels meeting slated for today on concern about the lack of assurances from Greek leaders to stick to spending cuts. They will hold a teleconference instead. The euro erased earlier gains after Reuters reported that policy makers are examining delays to a second bailout program for Greece until after the nation holds elections in April.
The S&P 500 erased yesterday’s 0.1 percent drop. The Fed Bank of New York’s general economic index increased to 19.5 this month from 13.5 in January and exceeded all forecasts in a Bloomberg News survey or economists.
The Stoxx Europe 600 Index gained 0.7 percent as more than three shares advanced for every one that declined. BNP Paribas, France’s largest bank, rallied 5.6 percent. Heineken, the world’s third-biggest brewer, climbed 3.1 percent.
European Growth
The euro weakened 0.4 percent versus the yen. The currency strengthened earlier after the European Union said gross domestic product in the euro area fell 0.3 percent from the prior three months, the first drop since the second quarter of 2009. Economists forecast a 0.4 percent drop, the median of 42 estimates in a Bloomberg survey showed.
The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments climbed 11.2 basis points to 343.5.
The S&P GSCI climbed 0.8 percent to the highest since Aug. 2. Oil in New York rose 1 percent to $101.76 a barrel.
MSCI Emerging Markets Index (MXEF) climbed 1.3 percent. Chinese stocks listed in Hong Kong gained 2.4 percent and benchmark indexes in South Korea and Taiwan advanced more than 1 percent. Russia’s Micex Index added 1.2 percent. The BSE India Sensitive Index, or Sensex, rose 2 percent.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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