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Spanish 10-year (GFRN10) yields dropped eight basis points to 2.09 percent at 11 a.m. in London, after touching 2.083 percent, the lowest since Bloomberg started tracking the data in 1993. The yield on similar-maturity German bonds fell to a record 0.915 percent. The dollar weakened against all but one of its major peers. The MSCI Emerging Markets Index added
0.3 percent, trading at the highest level since August 2011. The Stoxx Europe 600 Index was little changed with Standard & Poor’s 500 Index futures after the U.S. measure closed above 2,000 for the first time. Gold rose 0.4 percent.
French manufacturing confidence fell, while a gauge of German consumer sentiment dropped more than analysts estimated, adding to speculation that euro-area stimulus will be bolstered. Yields on 10-year Austrian, Belgian, Dutch, Finnish and Irish debt dropped to all-time lows. Russian President Vladimir Putin said talks with his Ukrainian counterpart over separatist fighting that’s killed more than 2,000 people were “positive.”
“It’s pretty straightforward: more and more investors are expecting something big to be announced at the beginning of September,” said Felix Herrmann, an analyst at DZ Bank AG in Frankfurt. “At the moment they are just continuing the hunt for yield.”
German Confidence
Germany’s GfK consumer confidence will decline to 8.6 in September, according to a report from GfK, missing the 8.9 median projection of economists surveyed by Bloomberg News. The measure was at 8.9 in August, the highest reading since 2006. French manufacturing confidence fell to the lowest in 13 months in August.The data is helping to fuel bets that European Central Bank President Mario Draghi will boost stimulus to counter faltering growth and the threat of deflation. Federal Reserve Chair Janet Yellen, who is already paring back unprecedented asset purchases, said Aug. 22 that while slack remains in the labor market, the timeline for interest-rate increases could be brought forward under the right circumstances.
French 10-year yields slid to 1.244 percent, and Italy’s (GBTPGR10) touched 2.362 percent. The yield on 10-year Japanese bonds fell 0.5 basis point to 0.49 percent, the lowest since April last year.
Euro, Dollar
The U.S. currency fell 0.1 percent to $1.3183 per euro after touching $1.3153, the strongest level since Sept. 6, and declined 0.1 percent to 103.92 yen.The Stoxx 600 was little changed today after it climbed 1.8 percent in the past two days, closing at its highest level since July 24.
Travel and leisure shares advanced the most among 19 industry groups. Deutsche Lufthansa AG rose 2.9 percent, and Ryanair Holdings Plc climbed 3.1 percent after the discount airline said it will start a service for business travelers.
Telecom Italia SpA advanced 3.1 percent after Oi SA said it is reviewing options for buying a stake in Tim Participacoes SA. Portugal Telecom SA, which is merging with Oi SA, led its country’s equities higher as it gained 6.2 percent.
U.K. water supplier United Utilities Group Plc (UU/) fell 1.7 percent after Bank of America Corp. and RBC Capital Markets LLC downgraded the shares.
Above 2,000
The S&P 500 closed 0.1 percent higher at 2,000.02 after climbing to as high as 2,005.04 in the U.S. day yesterday. More than $1 trillion has been added to the value of American equities since a two-month low reached Aug. 7.Tiffany & Co. and Brown-Forman Corp. are reporting earnings today. About 76 percent of those that have posted results this season have beaten analysts’ estimates for profit, while 65 percent exceeded sales projections, according to data compiled by Bloomberg.
The MSCI gauge of stocks for developing nations climbed for a fourth day. Russia’s Micex Index added 0.7 percent while the ruble was little changed, weakening less than 0.1 percent. Ukraine’s hryvnia dropped 0.2 percent and the government 2017 Eurobond fell for a sixth day, sending the yield 23 basis points higher to 10.78 percent.
Putin, Poroshenko
Russian President Vladimir Putin met his Ukrainian counterpart, Petro Poroshenko, in Minsk, Belarus, amid tension between the two countries after five months of separatist unrest. The talks yesterday were “complicated,” with both sides at times presenting “radically different” positions, according to Belorussian President Aleksandr Lukashenko.“Russia, for its part, will do everything for this peace process,” Putin said today after meeting Ukrainian President Petro Poroshenko at a summit of the Customs Union trading bloc in Minsk that was also attended by the leaders of Kazakhstan and Belarus and the European Union foreign-policy chief.
Poroshenko said on Twitter after the talks that Russia, Belarus and Kazakhstan backed a Ukrainian peace strategy to stem fighting between the army and pro-Russian insurgents.
Israel and Hamas said that they accepted an Egypt-brokered cease-fire plan to end a seven-week conflict in Gaza that has killed more than 2,100 Palestinians and about 70 Israelis. The armistice started at 7 p.m. local time yesterday.
Gold for immediate delivery rose 0.4 percent to $1,286.20 an ounce in London trading and silver climbed 0.6 percent to $19.4788 an ounce for a second day of gains. Platinum added 0.3 percent to $1,422 an ounce while palladium gained 0.2 percent to $888.60 an ounce.
West Texas Intermediate crude oil increased 0.3 percent to $94.11 a barrel in New York. Brent crude rose 0.1 percent in London trading to $102.61 a barrel.
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