Oil fell for a third day as U.S. supplies were estimated to be near a four-month high.
The Stoxx Europe 600 Index gained 0.8 percent at 8:35 a.m. in New York as 10 shares advanced for every one that declined. Standard & Poor’s 500 Index futures added 0.4 percent. The yield on 10-year Treasuries was little changed at 2.27 percent after climbing three basis points to 2.29 percent. Chinese equities rallied the most in three months after i
ndustrial profit rose. Copper added 0.9 percent. The krona slid to a four-year low against the dollar, while Brazil’s real rebounded from a nine-year low.
Durable goods orders fell for a second month in September, Commerce Department data showed today. The Fed is set to finish its monthly bond-buying and leave its key interest rate unchanged near zero, according to Bloomberg surveys of analysts. Facebook Inc. is scheduled to release earnings.
“The macro numbers are becoming more and more important to evaluate when the Fed will exit its policy of cheap money,” Soeren Steinert, who helps manage $24 billion as associate director for equities trading at Quoniam Asset Management GmbH in Frankfurt, wrote in an e-mail. “The market is following every word.”
Bank of Japan governor Haruhiko Kuroda and the board will keep monetary policy... Read More
All but one of the 19 industry groups in the Stoxx 600 gained as the gauge advanced for the first time in three days.
Novartis AG, the world’s biggest drugmaker by sales, climbed 2.4 percent and Roche Holding AG gained 1 percent.
UBS AG added 4.6 percent as Switzerland’s biggest bank set aside 1.84 billion Swiss francs ($1.94 billion) for litigation provisions, easing investor concern about the future cost of legal challenges.
Profit Forecast
Standard Chartered Plc (STAN) dropped 9.5 percent after forecasting a drop in second-half profit.Sanofi tumbled 8.2 percent as the drugmaker’s board considers changing its chief executive officer. Sanofi also reported a 10 percent jump in third-quarter profit.
Pfizer Inc. climbed 1.8 percent after adjusted earnings per share topped estimates. Amgen Inc. (AMGN) rose 1.8 percent after the maker of arthritis treatment Enbrel raised its 2014 forecast. Twitter Inc. lost 14 percent in early New York trading after reporting another quarter of decelerating growth.
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.
Emerging Markets
The MSCI Emerging Markets Index climbed 0.7 percent as gauges of Chinese shares rallied more than 2 percent after industrial profits increased and President Xi Jinping signaled a nationwide expansion of free-trade zones.The Shanghai Composite Index (SHCOMP) halted a five-day losing streak, climbing 2.1 percent. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong surged 2.4 percent, the most in seven weeks. Taiwan’s Taiex jumped 1.7 percent.
Data from China’s statistics bureau showed profit at industrial companies grew 0.4 percent last month, compared with a 0.6 percent drop in August. Xinhua News Agency cited President Xi as saying that Shanghai’s free-trade zone can be replicated in other parts of the country.
The real strengthened 1.1 percent on speculation its drop yesterday after the re-election of President Dilma Rousseff was excessive as she considers changes to her economic team. The currency slid 1.9 percent yesterday.
The ruble weakened 0.2 percent to 42.3725 per dollar. The currency declined for a fifth day to a record on concern Russia will quicken its move to a free float after more than $20 billion of currency interventions this month failed to halt the depreciation.
Ruble Slides
Russia’s currency has depreciated 16 percent in three months, the world’s worst performance. The decline stoked speculation that the central bank will decide to abandon interventions as early as Oct. 31, when policy makers meet to decide on interest rates, according to Sberbank CIB.The Micex rose 1.7 percent, advancing for a third day, as Russia’s acceptance of the outcome of Ukraine’s weekend elections increased bets sanctions will be relaxed.
Ukraine bonds gained for an eighth day, sending the yield on 2017 Eurobonds 13 basis points lower to 13.28 percent.
Pro-European parties, which may have won enough seats in the vote to gain a two-thirds constitutional majority, began talks on forging a coalition. Russia said it’s considering requests for emergency aid to the two easternmost regions torn by a separatist rebellion.
Increase Delayed
Sweden’s currency dropped at least 0.7 percent against all of its 16 major counterparts following the central bank’s decision to cut interest. The Riksbank said it won’t raise rates until mid-2016, compared with a September forecast for the end of 2015.The krona depreciated 1 percent to 7.3729 per dollar and touched 7.3775, the weakest level since September 2010. It fell 1.2 percent to 9.3681 per euro.
Europe’s 18-nation shared currency was little changed at $1.2704. The yen weakened 0.3 percent to 108.11 per dollar.
Treasury two-year notes set for sale today were poised to draw the lowest yield in five months. The yield was little changed at 0.40 percent.
Japan sold two-year notes at a record-low yield today after an auction of three-month bills last week drew a negative yield.
Copper rose to $6,784 a metric ton. China is the biggest buyer of the metal. Nickel jumped 2.2 percent after Goldman Sachs Group Inc. said production cuts of substitute nickel pig iron are on the way.
Oil Rises
West Texas Intermediate oil increased 0.6 percent to $81.47 a barrel, after falling to a two-year low of $79.44 a barrel yesterday. U.S. crude stockpiles probably expanded to the highest level since July last week, a Bloomberg News survey showed before a government report tomorrow. Prices have slumped about 25 percent since June. Brent crude added 0.3 percent to $86.05 a barrel.Soybean meal rallied 3.3 percent to a four-month high as meat prices close to a record spurred demand for animal feed to fatten hogs and chickens. Prices yesterday jumped 7.6 percent, the most since 2007.
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