The yield on 10-year Treasuries dropped three basis points to 2.19 percent at 7:12 a.m. in New York, while Greek and Portuguese bonds led gains in European securities. The euro retreated 0.2 percent to $1.2695 and the pound lost 0.4 percent to $1.6046. The Stoxx Europe 600 Index added 0.2 percent, erasing earlier declines after GlaxoSmithKline Plc jumped on earnings. Standard & Poor’s 500 Index futures slipped 0.1 percent. Zinc advanced 1.2 percent.
Consumer prices probably increased at a slower pace last month in the U.S., analysts said before a report today, easing pressure on the Federal Reserve to raise rates as
the economy improves. Minutes of the Bank of England’s latest meeting showed officials were split on whether to increase rates as a majority saw higher risks from a slump in the euro area. The ECB bought Spanish covered bonds, according to people familiar with the matter.
“U.S. CPI data is likely to confirm that there is no price pressure,” said Vincent Chaigneau, global head of rates and foreign-exchange strategy at Societe Generale SA in Paris. “While the Fed has signaled policy normalization is on the way, the bond market is saying that is not going to be possible any time soon.”
ECB Buying
The ECB is adding to French and Portuguese securities it bought this week, said the people, who asked not to be identified they’re not authorized to talk about it. The central bank will reveal the amount of debt purchased on Oct. 27.Treasuries extended their best month of gains since January before today’s data. Inflation probably slowed to 1.6 percent in September from a year earlier, from 1.7 percent a month earlier, according to the median of 41 estimates in a Bloomberg survey of economists.
The difference between yields on 10-year notes and same-maturity Treasury Inflation Protected Securities, a gauge of trader expectations for consumer prices over the life of the debt, was at 1.91 percentage points. The figure has dropped from this year’s high of 2.31 in January.
In Europe, Greece’s 10-year yield fell 50 basis points to 7.21 percent and Italy’s dropped three basis points to 2.48 percent. Portugal’s rate slid 11 basis points to 3.29 percent.
The euro weakened a second day versus the yen, dropping 0.2 percent to 135.80 as Japan’s currency rose versus most of its 16 major counterparts. Norway’s krone was the biggest loser as it weakened 0.5 percent to 8.3901 per euro.
Nordea Misses
More than two shares advanced for every one that declined in the Stoxx 600 fell, with trading volumes 19 percent greater than the 30-day average, according to data compiled by Bloomberg.Glaxo jumped 4.3 percent after reporting better-than-estimate core earnings per share. ABB Ltd. (ABBN) rose 1.7 percent after reporting third-quarter profit that exceeded projections.
Nordea Bank AB (NDA) lost 2 percent after posting worse-than-estimated net income. British American Tobacco Plc (BATS) slid 3.9 percent after saying cigarette shipments dropped further in the first nine months of the year.
Futures fell after the S&P 500 jumped the most in a year yesterday, extending its four-day advance to 4.2 percent, its biggest jump since January 2013.
Yahoo Beats
Yahoo! Inc. (YHOO) climbed 3.3 percent in early New York trading after posting profit and sales that beat analysts’ estimates. Dow Chemical Co. jumped 5.8 percent after the largest U.S. chemical maker by sales posted earnings that beat analysts’ estimates as plastics margins widened.About 80 percent of S&P 500 companies that have posted quarterly earnings this season have topped analysts’ estimates for profit, while 61 percent beat sales projections, data compiled by Bloomberg show.
The MSCI Emerging Markets Index rose 0.6 percent, with benchmark gauges in Hong Kong, South Korea and Taiwan climbing more than 1 percent.
The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong gauge advanced 1.5 percent to the highest close since Oct. 9 while the Shanghai Composite Index slid 0.6 percent. China’s benchmark money-market rate fell for a sixth day, signaling fund injections by the central bank have boosted cash in the financial system.
BYD Co. (1211), the electric automaker partially owned by Warren Buffett’s Berkshire Hathaway Inc., advanced 3.5 percent after China said it would promote alternative-energy car use in Beijing.
India’s Sensex added 0.8 percent to the highest level this month on expectations Prime Minister Narendra Modi will accelerate policy changes to boost growth.
Zinc advanced for the first time this week and aluminum rose 0.8 percent.
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