By Stephen Kirkland and Rita Nazareth - Feb 24, 2012 10:08 PM GMT+0700
Feb. 24 (Bloomberg) -- Andrew Sullivan, principal sales trader at Piper Jaffray Asia Securities Ltd., talks about the outlook for Hong Kong stocks. He also discusses the dispute within Australia's ruling Labor Party, corporate governance in Japan, and Europe's sovereign debt crisis. He speaks in Hong Kong with Rishaad Salamat, Mia Saini, Zeb Eckert and John Dawson on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Feb. 24 (Bloomberg) -- Scott Wren, a senior equity strategist at Wells Fargo Advisors, talks about U.S. stocks and the nation's economy. The number of Americans filing first-time claims for jobless benefits last week held at a four-year low and consumers became more confident, indicating an improving labor market may boost household spending. Wren also discusses Europe's sovereign debt crisis, China's economy, and concerns about Iran's nuclear program. He speaks with Zeb Eckert on Bloomberg Television's "First Up." (Source: Bloomberg)
A pedestrian looks at an electronic stock board outside a securities firm in Tokyo, Japan. Photographer: Tomohiro Ohsumi/Bloomberg
Stocks rose, sending the Standard & Poor’s 500 Index above its highest closing level since June 2008, and oil extended its longest streak of gains in two years as reports bolstered confidence in the global economy. The cost of insuring European government debt fell and the yen weakened.
The S&P 500 (SPXL1) rose 0.3 percent to 1,367.26 at 10:06 a.m in New York and the Dow Jones Industrial Average exceeded 13,000 for the second time since 2008. The Stoxx Europe 600 Index added 0.3 percent. Oil in New York advanced 0.8 percent. The yen slipped 1.5 percent against the euro, reaching the weakest level of the year. The cost of insuring against a default on European government bonds fell for the first time in four days.
Purchases of new homes in the U.S. exceeded economists’ forecasts in January and a gauge of consumer confidence topped estimates. South Korea’s central bank said consumer confidence jumped to a three-year high. Finance ministers and central bank governors from the Group of 20 nations meet tomorrow in Mexico and may discuss committing fresh cash to the International Monetary Fund to defuse the European fiscal crisis.
“The economy is growing, you’ve got good corporate earnings and reasonably inexpensive stock valuations,” Randy Bateman, chief investment officer of Huntington Asset Management in Columbus, Ohio, said in a telephone interview. His firm oversees $14.5 billion. “What’s not to like? If you’d have a psychological barrier that’s broken, you’d maybe see a continuation of a pretty good year for stocks.”
Economic Data
New home sales, tabulated when contracts are signed, fell 0.9 percent to a 321,000 annual pace from a 324,000 rate in December that was stronger than previously reported, figures from the Commerce Department showed today in Washington. The median estimate of 77 economists surveyed by Bloomberg News called for a rise to 315,000. The number of homes for sale dropped to a record low.
The Thomson Reuters/University of Michigan final index of consumer sentiment for February rose to a one-year high of 75.3, topping the median economist projection for a reading of 73.
American International Group Inc. surged 4 percent as the bailed-out insurer said profit jumped 77 percent. Salesforce.com Inc., the largest seller of online customer-management software, climbed 7.9 percent after billings growth topped analysts’ estimates.
European Stocks
Almost two shares climbed for each that dropped in the Stoxx 600. Telecom Italia SpA (TIT) jumped 5.3 percent after posting full-year profit before some items that climbed 7.3 percent and forecasting “broadly stable” earnings and revenue this year. Eiffage SA surged 12 percent for the biggest rally in the Stoxx 600 (SXXP) as Chief Executive Officer Pierre Berger said net income and sales at the French builder will climb in 2012. SAP AG added 2 percent after its board recommended an 83 percent increase to the software company’s dividend.
The euro rose 0.5 percent to $1.3440, appreciating to the highest level since December. The yen weakened against all 16 major peers, falling for the seventh straight day versus the euro.
The yield on the Italian 10-year bond fell nine basis points to 5.45 percent, with the two-year note yield 11 basis points lower. Italy sold 4.5 billion euros ($6 billion) of zero- coupon and inflation-linked bonds, meeting its target for the auction as borrowing costs fell.
The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments dropped 3.5 basis points to 344.5.
The S&P GSCI gauge of 24 commodities advanced 0.2 percent to the highest since June 10, led by gains in oil and industrial metals. New York crude rose to $108.69 a barrel, the seventh consecutive gain and the longest streak since January 2010, amid concern escalating tension with Iran will threaten supplies.
The MSCI Emerging Markets Index (MXEF) advanced 0.7 percent. The Shanghai Composite Index (SHCOMP) jumped 1.3 percent, and Russia’s Micex Index climbed 3.7 percent, the most since November. Indonesia’s Jakarta Composite Index (JCI) sank 1.6 percent. BSE India Sensitive Index (SENSEX) dropped 0.9 percent, a third day of losses, on concern oil-price gains may fuel inflation.
To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Rita Nazareth in New York at rnazareth@bloomberg.net
To contact the editor responsible for this story: Nick Baker at nbaker7@bloomberg.net
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