Europe Index Futures Rise With Asia as Yen Retreats
European index futures climbed with Asian stocks, Treasuries fell and the yen retreated before reports that may signal the U.S. economic recovery is gathering pace. New Zealand’s dollar weakened and gold rebounded.
The MSCI Asia Pacific Index added 0.4 percent by 7:12 a.m. in London, rising a sixth day as a weaker yen fueled gains in Japan and a measure of emerging-market shares erased most of this year’s drop. Futures on the Euroe Stoxx 50 Index climbed 0.3 percent and Standard & Poor’s 500 Index contracts added 0.1 percent. U.S. 10-year Treasury yields rose a second day while a gauge of credit-default swap prices for Asia fell to a six-month low. The kiwi weakened 0.5 percent versus the dollar. Gold gained 0.3 percent and soybeans added 0.3 percent.
The S&P 500 closed at a record overnight as manufacturing indexes and vehicle-sales data signaled growth may be quickening in the world’s largest economy ahead of employment reports that start today. A measure of U.K. home prices is due today and European Union finance ministers meet in Athens before the European Central Bank decides monetary policy tomorrow. Lawmakers in the U.S. endorsed an aid package for Ukraine as NATO explores ways to bolster European security.
“We expect global economic growth to improve further,” Daphne Roth, Singapore-based head of Asian equity research at ABN Amro Private Banking, which oversees about $207 billion, said by phone. “The softer data we’ve seen in the U.S. is weather-related. The data should show that global economic growth is on the mend. It make sense to be overweight equities.”
Global Equities
About five stocks rose for every three that fell on the Asia-Pacific gauge, which is rising a sixth straight day. The MSCI All Country World Index closed at the highest since December 2007 yesterday, while the MSCI Emerging Markets Index capped its longest streak of gains since January 2013. The developing country gauge rose 0.2 percent today and touched the highest since Jan. 2.
Japan’s Nikkei 225 Stock Average increased 1 percent in its fifth advance in six days and the Topix index added 0.6 percent as the yen slipped to 103.76, the weakest since Jan. 23. The currency fell as much as 0.5 percent against the greenback yesterday.
The Kospi index in Seoul climbed 0.3 percent, gaining a sixth day to be headed for the highest close since Dec. 30. Australia’s S&P/ASX 200 Index (AS51) rose 0.3 percent. BHP Billiton Ltd., the world’s largest mining company, advanced 0.9 percent in Sydney on plans to simplify its portfolio to focus on iron ore, copper, coal and petroleum.
Hong Kong’s Hang Seng Index climbed 0.2 percent and a gauge of Chinese companies traded in the city dropped 0.8 percent after rallying 9.7 percent through yesterday from March 20, when it entered a so-called bear market.
Potential Default
Russia’s ruble was little changed against the dollar and weakened 0.2 percent to 48.4882 versus the euro. Moscow’s Micex snapped three days of gains to fall 0.4 percent.
U.S. Air Force General Philip Breedlove is considering options for bolstering support to eastern nations unnerved by Russia’s annexation of Crimea. Choices include putting a U.S. warship in the Black Sea, beefing up previously scheduled NATO exercises and improving the readiness of the alliance’s 13,000-member rapid-response force, according to an American defense official who spoke on condition of anonymity to discuss military planning.
The kiwi, the best-performing currency among 16 major peers versus the dollar this year, dropped to 85.95 U.S. cents and lost 0.3 percent against neighboring Australia’s dollar in a third declining day. The weighted average price of nine products traded at the GlobalDairyTrade, a worldwide benchmark, slid 8.9 percent from two weeks ago to $4,124 a ton yesterday. New Zealand is home to the world’s biggest dairy exporter.
Ringgit Drops
Malaysia’s currency declined to 3.2638 to the dollar, the first retreat since March 25. The ringgit yesterday touched the highest level since March 7.
The 10-year Treasury yield climbed 1 basis point to 2.76 percent today, heading for the highest closing level since March 20. The extra yield 10-year notes pay versus same-maturity German bunds widened to 1.18 percentage points, the most since 2006. A U.S. report April 4 will show the economy added 200,000 jobs in March, the most in four months, based on a Bloomberg News survey of economists.
The Markit iTraxx Asia index of credit-default swaps decreased 2 basis points to 120.5 basis points as of 8:02 a.m. in Hong Kong, according to Standard Chartered Plc. The measure is falling for a fourth consecutive day and is on track for its lowest close since Sept. 23, according to data provider CMA, which is owned by McGraw-Hill Cos. and compiles prices quoted by dealers in the private market.
Gold added 0.3 percent to $1,283.15 an ounce in the spot market after falling more than 1 percent over the past two days. Bullion sank to $1,277.79 yesterday, the lowest since Feb. 11, sending the 14-day relative strength index to this year’s low of 35. A level of 30 signals to those who study charts that prices may reverse. Silver and platinum climbed at least 0.2 percent.
Soybean futures climbed to $14.895 a bushel, the highest level since June, advancing for a third day, after inventory in the U.S., the world’s top producer, fell to the lowest in a decade.
Natural gas futures lost 0.6 percent after sliding 2.2 percent yesterday in a third day of declines. Commodity Weather Group LLC said temperatures on the U.S. East Coast and in the south through April 5 will be normal or above average.
A magnitude 8.2 earthquake off the coast of Chile, the world’s biggest copper producer, sent potentially damaging tsunamis toward the Pacific coasts of Central and South America.
(By Nick Gentle and Jonathan Burgos)
Source: bloomberg
