Pedestrians walk through the East Nanjing Road area in Shanghai. China’s gross domestic... Read More
The Standard & Poor’s 500 Index rose 0.6 percent at 9:31 a.m. in New York, headed for a fourth day of gains. The Stoxx Europe 600 Index climbed 1.6 percent. Apple Inc. gained 3 percent. The yield on 10-year Treasuries rose two basis points to 2.21 percent and the
rate on bunds added three basis points to 0.88 percent. The euro dropped 0.4 percent to $1.2746. West Texas Intermediate oil jumped 1 percent to $83.55 a barrel.
Apple gained after forecasting revenue for the holiday quarter that topped estimates and Swedbank, Sweden’s biggest mortgage lender, said it plans to cut jobs to adjust to a low-rate environment. The ECB bought Italian covered bonds as it returned to the market for a second day under its asset purchase program, according to two people familiar with the matter. Debt issued by Intesa Sanpaolo SpA was included in the purchases, according to one of the people.
“The focus may go back to the micro, the corporate, as we get into the meat of the reporting season,” James Buckley, who helps oversee about $48 billion as a money manager at Baring Asset Management Ltd. in London, said by telephone. The quarter “may be tough because of the global and geopolitical uncertainty, but guidance will be crucial,” he said.
Global Rout
More than $4 trillion has been erased from the value of equities worldwide the past six weeks amid concern the global economy is slowing. Deepening concern over the advance of Islamic militants in Syria and the spread of the Ebola virus also rattled investor sentiment.About 20 shares rose for every one that declined in the Stoxx 600, with trading volumes 49 percent greater than the 30-day average, according to data compiled by Bloomberg. Swedbank gained 3.3 percent. Swiss drugmaker Actelion Ltd. jumped 4.5 percent, raising its full-year forecast for a second time after earnings beat estimates.
Royal Dutch Shell Plc climbed 1.5 percent and BP Plc gained 1.8 percent. Total SA also advanced 2.2 percent. Total’s Chief Executive Officer Christophe de Margerie died in a Moscow plane crash.
Earnings Scorecard
Reckitt Benckiser Group Plc lost 2.2 percent after saying full-year sales growth will be at the lower end of its forecast.Coca-Cola Co. slipped 3.8 percent after the world’s largest beverage company posted third-quarter revenue that missed estimates. About 78 percent of S&P 500 companies that have posted quarterly earnings this season have topped analysts’ estimates for profit, while 60 percent beat sales projections, data compiled by Bloomberg show.
AbbVie Inc. climbed 1.3 percent. After scrapping a merger with Shire Plc, the U.S. drugmaker announced a $5 billion share buyback over the next several years and increased its quarterly dividend by 17 percent, to 49 cents per share.
The MSCI Emerging Markets Index slid 0.4 percent. Brazil’s Ibovespa tumbled 4 percent and the real weakened 1.1 percent after voter poll results showed increased support for President Dilma Rousseff, damping the prospect of a new government reviving the nation’s economy.
Benchmark gauges in Russia, India, South Africa, Turkey, Poland and Abu Dhabi advanced at least 0.5 percent.
The Hang Seng China Enterprises Index (HSCEI) of mainland companies listed in Hong Kong slipped 0.2 percent and the Shanghai Composite Index dropped 0.7 percent on speculation economic data bolstered the government’s case for avoiding broader stimulus measures.
A report today showed China’s economy expanded 7.3 percent in the third quarter from a year before. While that beat the estimate of 7.2 percent in a Bloomberg survey, it was still the slowest pace since 2009.
Brent climbed 0.6 percent to $85.95 a barrel.
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