European and Asian stocks advanced with U.S. equity-index futures after a gauge of global shares suffered its biggest weekly loss in three months. Gold fell from a four-month high, corn slid a 10th day and oil dropped as the threat of supply disruptions in the Middle East abated.

The Stoxx Europe 600 Index added 0.4 percent by 8:17 a.m. in London, while Standard & Poor’s 500 Index futures rose 0.2 percent after the U.S. gauge’s biggest weekly loss since April. The MSCI Asia Pacific Index climbed 0.5 percent. West Texas Intermediate crude oil traded near a two-month low. Gold fell the most since May and silver dropped 1.8 percent. Indonesia’s rupiah and Russia’s ruble weakened. Corn fell after the U.S. government raised its 2015 supply outlook.

European Central Bank President Mario Draghi may outline further cheap funding for the region’s lenders when he addresses lawmakers in Strasbourg. Russia and Germany called for a resumption of Ukraine crisis talks after an artillery shell landed in Russian territory, killing one person. Investors are waiting to hear Federal Reserve Chair Janet Yellen’s testimony to Congress later this week as Citigroup Inc. (C) and Goldman Sachs Group Inc. report earnings.

“The profits logged over the past week will filter into the stocks with the earnings profile,” Evan Lucas, a markets strategist in Melbourne at IG Ltd., wrote in an e-mail to clients today. “The second-quarter earnings season in the U.S. is likely to be the next major driver of global markets. With all the major U.S. banks reporting this week, the market will get the best view of the ‘self-sustaining’ U.S. economy that the Fed now sees.”

Stock Valuations

The MSCI All Country World Index of global stocks slipped last week by the most since April amid speculation valuations are too pricey and as a crisis at Portugal’s second-biggest bank renewed concern that Europe hasn’t resolved its debt problems.

The Stoxx 600 retreated 3.2 percent last week, the most since March 14. About six stocks rose for each that fell today, as all 19 industry groups advanced.

Lindt & Spruengli AG added 1.8 percent. The world’s largest producer of premium chocolate agreed to acquire Russell Stover Candies Inc., giving the Swiss company control of the biggest U.S. maker of boxed chocolate. Bankinter SA climbed after Nomura Holdings Inc. raised the Spanish lender’s stock to neutral from reduce.

Shire Plc advanced 2.8 percent in London. The company is willing to recommend a revised offer from AbbVie Inc. for a deal to combine the two drugmakers. AbbVie’s cash-and-stock offer values Shire at about 53.20 pounds a share, compared with the July close of 48.70 pounds. There is no certainty a deal will be made, Shire said in a statement today.

Asian Shares

MSCI’s Asia-Pacific index retreated 1.1 percent in the five days to July 11, the first drop in nine weeks and the steepest since March. The gauge was at a six-year high July 7, when it reached its most expensive level since December.

Japan’s Topix gauge gained 0.8 percent to halt a five-day slide as the yen slipped 0.2 percent to 101.47 per U.S. dollar. The yield on Japan’s 20-year note fell to 1.405 percent today, the lowest level since Feb. 5. The Bank of Japan begins a two-day monetary-policy review today, while China will report second-quarter economic-growth figures this week.

A gauge of Chinese shares in Hong Kong added 0.7 percent while the Shanghai Composite Index climbed 1 percent, the most in a month, after its first weekly retreat since June 20. The Hang Seng Index increased 0.5 percent.

China’s economy, the world’s second-largest, probably expanded 7.4 percent in the three months to June 30 from a year earlier, according to the median of 44 economists’ estimates compiled by Bloomberg before data scheduled for July 16.

Gold Rally

Gold for immediate delivery retreated 1.5 percent, the most since May 27, to $1,318.58 an ounce after reaching $1,345.17 on July 10. Silver slid to $21.0663, platinum fell 1.1 percent and palladium lost 0.7 percent to $867.50.

The ruble retreated 0.2 percent to 34.2850 per dollar, a third straight decline, and slid 0.3 percent to 46.6875 a euro. The Micex Index slid 0.6 percent in Moscow.

Putin and German Chancellor Angela Merkel agreed during a meeting in Rio de Janeiro yesterday that international representatives should meet as soon as possible, probably via video link, said Dmitry Peskov, the Russian president’s spokesman. The so-called contact group on Ukraine should work to secure a cease-fire and a resumption of monitoring, he said.

Indonesia’s rupiah dropped the most in more than a week after Bank Indonesia said the current-account deficit probably widened to near a record last quarter. The currency fell 0.6 percent to 11,658 per dollar, the biggest drop since July 2, prices from local banks show.

U.S. Stocks

The S&P 500 rose to 1,967.57 July 11, cutting its weekly decline to 0.9 percent, still the most since April. Gains in Amazon.com Inc. and EBay Inc. and deal activity overshadowed concern over financial stress in Europe, after Portuguese bonds rebounded.

Alcoa Inc. started the second-quarter financial reporting season last week, with banks including Citigroup, JPMorgan Chase & Co. and Goldman to announce results this week.

Profit at S&P 500 companies probably rose 4.5 percent in the three months through June, while sales gained 3.1 percent, analyst estimates compiled by Bloomberg show. The projections have decreased from the start of April, when analysts predicted a 7.3 percent jump in earnings and a 3.7 percent sales increase.

U.S. Treasuries due in a decade fell today after rising every day last week. Yields climbed one basis point, or 0.01 percentage point, to 2.53 percent. Yields dropped 12 basis points last week, the most since March, as signs of European financial stress boosted the appeal of the safe-haven assets.

Oil Slides

Yields on 10-year Australian bonds climbed four basis points today to 3.45 percent after four days of declines.

West Texas Intermediate crude was little changed at $100.32 a barrel today, the lowest intraday price since May 12. The contract dropped 2 percent July 11 to cap a weekly loss of 3.1 percent, the most since the end of April. U.S. data last week showed stockpiles gained at the Cushing, Oklahoma, delivery point as risks to supply in Libya and Iraq eased. Brent was little changed at $106.53 a barrel after sinking 3.6 percent last week.

Corn futures for December delivery dropped to $3.84 a bushel, and touched the lowest price since July 2010. Corn supplies in 2015 will reach 1.801 billion bushels, up 4.3 percent from their forecast last month, the U.S. agriculture department said July 11, even as it reduced its estimate for the size of the 2014 crop. The $3.70 level triggers a subsidy contained in farm legislation Congress passed this year.

Soybeans were little changed after capping a 10th straight decline on July 11, the longest streak of consecutive losses since July 1973. Wheat for September delivery gained 1.1 percent, rising for the first time in six days. The crop slid 4.1 percent July 11.

 

Source: bloomberg

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