July 22 (Bloomberg) --European equities advanced with Russian stocks while gold and Treasuries slipped as the stand-off surrounding a downed passenger jet in Ukraine eased.
Chinese shares jumped by the most in three months and Indonesia’s rupiah strengthened before election results. The Stoxx Europe 600 Index climbed 0.6 percent by 8:15 a.m in London, while Russia’s Micex Index (INDEXCF) advanced for the first time in seven days.
Standard & Poor’s 500 Index futures gained 0.1 percent while the yield on 10-year U.S. notes increased one basis point. Ten-year notes from the U.K., France and Germany dropped. Gold retreated 0.3 percent and Japan’s yen, also seen as a haven asset, weakened 0.1 percent.
Hong Kong’s Hang Seng China Enterprises Index (HSCEI) surged 2 percent. The rupiah added 0.4 percent.
Rebels in Ukraine’s east began releasing the bodies of the 298 people killed in the shooting down of a Malaysia Airlines passenger jet last week as European foreign ministers meet to discuss sanctions against Russia today.
Chinese shares are rallying as some cities reduce property-market restrictions amid speculation that the central government will do more to support growth. In the U.S., inflation is projected to come in unchanged at 2.1 percent for June, while Apple Inc. (AAPL) and Microsoft Corp. report earnings.
“Markets will start ignoring what’s happening in terms of geopolitics,” Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors Ltd., which manages $131 billion, said in an interview in Sydney.
“As sad as it sounds and as tragic the shooting of the plane and loss of life, the broad impact on economic activity is likely to be quite minimal. The broader focus in markets is likely to be economic fundamentals and the earnings season.”
Russia Rebound
MSCI’s index of global stocks was up 0.2 percent, erasing yesterday’s retreat. The S&P 500 pared a drop of as much as 0.6 percent in the U.S. yesterday.
Russia’s Micex Index of stocks climbed 0.9 percent today. The gauge yesterday capped a sixth straight loss, the longest streak since January. The ruble strengthened 0.4 percent to 35.05 per dollar, the biggest gain in two weeks, and increased to 47.39 per euro.
U.S President Barack Obama urged a diplomatic solution to the crisis in Ukraine and Malaysian Prime Minister Najib Razak said pro-Russia rebels had agreed to hand over bodies and grant access to the jet’s debris. The insurgents are accused of shooting down the Malaysian plane last week.
The Stoxx 600 is higher for the first time in four days, with 18 of 19 industry groups advancing. Actelion Ltd. climbed 4 percent after it raised its full-year profit forecast and reported second-quarter earnings that beat analysts’ expectations because of sales of the new lung drug Opsumit.
Asian Equities
Publicis Groupe SA, the French advertising company that abandoned a $35 billion merger with Omnicom Group Inc. in May, dropped 4.3 percent after it said second-quarter sales fell 1.5 percent as the euro strengthened and markets including North America shrank.
The MSCI Asia Pacific Index added 0.6 percent to 147.75, heading for the highest close since June 2008. (MXAP) The Shanghai Composite Index climbed 1.1 percent.
Hong Kong’s Hang Seng Index climbed 1.4 percent and the Hang Seng China Enterprises Index jumped 2.1 percent, the most since March 26. China Cinda Asset Management Co., the nation’s biggest bad-loans manager, surged 5.6 percent. Banks should speed up the pace of selling non-performing loans, China Banking Regulatory Commission Vice Chairman Yan Qingmin said in a Financial News article today.
Green Subsidies
Dongfeng Motor Group Co. advanced 3.2 percent for its first gain in four days and BYD Co., the electric-car maker in which Warren Buffett is an investor, surged 3.2 percent toward its highest close in three months.
China National Radio yesterday reported that the country will use fiscal subsidies to support makers of new-energy vehicles, while excluding foreign companies from the assistance program.
Just four of the 33 industries on Japan’s Topix retreated today as markets reopened after a holiday. The Kospi index in Seoul gained 0.5 percent.
The Australian dollar strengthened 0.3 percent to 93.98 U.S. cents. The Group of 20 nations’ growth pledge could “considerably help” revive activity, Reserve Bank of Australia Governor Glenn Stevens said in a speech that didn’t directly address his nation’s economy or currency.
Indonesia Election
West Texas Intermediate crude oil advanced 0.4 percent to $105.02, the highest level since July 2, while Brent was little changed at $107.73. Crude inventories probably shrank by 2.8 million barrels last week, according to a Bloomberg News survey before a report from the Energy Information Administration tomorrow.
The rupiah strengthened for a fifth day as unofficial election tallies put Jakarta Governor Joko Widodo on course to become Indonesia’s first leader without ties to the Suharto era.
Indonesia’s currency strengthened to 11,523 per dollar after touching 11,503, the strongest since May 21, according to prices from local banks compiled by Bloomberg.
The Jakarta Composite Index, Asia’s second-best performing emerging-market stock measure this month, slipped 1.1 percent. Outgoing President Susilo Bambang Yudhoyono, whose term ends in October, has urged supporters on both sides to remain calm following the vote.
bloomberg.com
Chinese shares jumped by the most in three months and Indonesia’s rupiah strengthened before election results. The Stoxx Europe 600 Index climbed 0.6 percent by 8:15 a.m in London, while Russia’s Micex Index (INDEXCF) advanced for the first time in seven days.
Standard & Poor’s 500 Index futures gained 0.1 percent while the yield on 10-year U.S. notes increased one basis point. Ten-year notes from the U.K., France and Germany dropped. Gold retreated 0.3 percent and Japan’s yen, also seen as a haven asset, weakened 0.1 percent.
Hong Kong’s Hang Seng China Enterprises Index (HSCEI) surged 2 percent. The rupiah added 0.4 percent.
Rebels in Ukraine’s east began releasing the bodies of the 298 people killed in the shooting down of a Malaysia Airlines passenger jet last week as European foreign ministers meet to discuss sanctions against Russia today.
Chinese shares are rallying as some cities reduce property-market restrictions amid speculation that the central government will do more to support growth. In the U.S., inflation is projected to come in unchanged at 2.1 percent for June, while Apple Inc. (AAPL) and Microsoft Corp. report earnings.
“Markets will start ignoring what’s happening in terms of geopolitics,” Nader Naeimi, head of dynamic asset allocation at AMP Capital Investors Ltd., which manages $131 billion, said in an interview in Sydney.
“As sad as it sounds and as tragic the shooting of the plane and loss of life, the broad impact on economic activity is likely to be quite minimal. The broader focus in markets is likely to be economic fundamentals and the earnings season.”
Russia Rebound
MSCI’s index of global stocks was up 0.2 percent, erasing yesterday’s retreat. The S&P 500 pared a drop of as much as 0.6 percent in the U.S. yesterday.
Russia’s Micex Index of stocks climbed 0.9 percent today. The gauge yesterday capped a sixth straight loss, the longest streak since January. The ruble strengthened 0.4 percent to 35.05 per dollar, the biggest gain in two weeks, and increased to 47.39 per euro.
U.S President Barack Obama urged a diplomatic solution to the crisis in Ukraine and Malaysian Prime Minister Najib Razak said pro-Russia rebels had agreed to hand over bodies and grant access to the jet’s debris. The insurgents are accused of shooting down the Malaysian plane last week.
The Stoxx 600 is higher for the first time in four days, with 18 of 19 industry groups advancing. Actelion Ltd. climbed 4 percent after it raised its full-year profit forecast and reported second-quarter earnings that beat analysts’ expectations because of sales of the new lung drug Opsumit.
Asian Equities
Publicis Groupe SA, the French advertising company that abandoned a $35 billion merger with Omnicom Group Inc. in May, dropped 4.3 percent after it said second-quarter sales fell 1.5 percent as the euro strengthened and markets including North America shrank.
The MSCI Asia Pacific Index added 0.6 percent to 147.75, heading for the highest close since June 2008. (MXAP) The Shanghai Composite Index climbed 1.1 percent.
Hong Kong’s Hang Seng Index climbed 1.4 percent and the Hang Seng China Enterprises Index jumped 2.1 percent, the most since March 26. China Cinda Asset Management Co., the nation’s biggest bad-loans manager, surged 5.6 percent. Banks should speed up the pace of selling non-performing loans, China Banking Regulatory Commission Vice Chairman Yan Qingmin said in a Financial News article today.
Green Subsidies
Dongfeng Motor Group Co. advanced 3.2 percent for its first gain in four days and BYD Co., the electric-car maker in which Warren Buffett is an investor, surged 3.2 percent toward its highest close in three months.
China National Radio yesterday reported that the country will use fiscal subsidies to support makers of new-energy vehicles, while excluding foreign companies from the assistance program.
Just four of the 33 industries on Japan’s Topix retreated today as markets reopened after a holiday. The Kospi index in Seoul gained 0.5 percent.
The Australian dollar strengthened 0.3 percent to 93.98 U.S. cents. The Group of 20 nations’ growth pledge could “considerably help” revive activity, Reserve Bank of Australia Governor Glenn Stevens said in a speech that didn’t directly address his nation’s economy or currency.
Indonesia Election
West Texas Intermediate crude oil advanced 0.4 percent to $105.02, the highest level since July 2, while Brent was little changed at $107.73. Crude inventories probably shrank by 2.8 million barrels last week, according to a Bloomberg News survey before a report from the Energy Information Administration tomorrow.
The rupiah strengthened for a fifth day as unofficial election tallies put Jakarta Governor Joko Widodo on course to become Indonesia’s first leader without ties to the Suharto era.
Indonesia’s currency strengthened to 11,523 per dollar after touching 11,503, the strongest since May 21, according to prices from local banks compiled by Bloomberg.
The Jakarta Composite Index, Asia’s second-best performing emerging-market stock measure this month, slipped 1.1 percent. Outgoing President Susilo Bambang Yudhoyono, whose term ends in October, has urged supporters on both sides to remain calm following the vote.
bloomberg.com
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