Oct. 29 (Bloomberg) -- In today's "Single Best Chart," Bloomberg's
Scarlet Fu displays how bear markets are triggered by either Federal
Reserve tightening or economic recessions. She speaks on "Bloomberg
Surveillance."
The Stoxx Europe 600 Index (BUSY) rose 0.3 percent at 7:36 a.m. in New York and the MSCI Asia Pacific Index added 1.3 percent. Facebook slid 8.1 percent after projecting sales that trailed analysts’ highest predictions. Standard & Poor’s 500 Index futures slipped 0.2 percent. The U.S. 10-year note yield fell one basis point to 2.29 percent. The Norwegian krone weakened at least 0.4 percent against all of its 16 major peers. Oil rose for a second day while Russia’s ruble retreated to
a record low for a sixth day.
There’s only a 50 percent chance the Fed will raise its interest-rate target to at least 0.5 percent by October next year, after ending its bond-buying program today and leaving its key rate near zero, futures data and analyst forecasts compiled by Bloomberg show. The S&P 500 Index (SPX) closed within 1.5 percent of a record yesterday amid better-than-estimated earnings.
“The market consensus is for the quantitative-easing program to end, and therefore the focus is shifted to the language,” said Vincent Chaigneau, global head of rates and foreign-exchange strategy at Societe Generale SA in Paris. “Overall, we expect the Fed to remain dovish, given inflation is pretty low and global-economic outlook has deteriorated. Yields should stay low.”
Customers browse make-up at a store in the Brooklyn borough of New York. Consumer... Read More
Total Beats
Three shares advanced for every one that declined in the Stoxx 600, after it climbed the most in a week yesterday.Total SA (FP) rose 1.7 percent after posting third-quarter net income that beat analysts’ estimates. Schneider Electric SE advanced 2.5 percent after reporting third-quarter sales that topped projections.
Deutsche Bank AG declined 1.8 percent after Germany’s biggest lender swung to a loss in the third quarter. Air France-KLM Group slid 2.2 percent after quarterly profit fell. Sanofi dropped 4 percent after firing its chief executive officer.
The S&P 500 closed at a one-month high and has risen 6.6 percent from its low on Oct. 15.
The Fed Open Market Committee releases a statement at the end of a two-day policy meeting after European markets close. Minutes from the last meeting, when the Fed pledged to keep interest rates low for a considerable time, revealed officials’ concern that U.S. growth may be at risk from a global slowdown.
Rocket Explodes
Gilead Sciences Inc. lost 2.3 percent in early New York trading after reporting third-quarter earnings that missed estimates. Orbital Sciences Corp. sank 12 percent after its Antares rocket exploded shortly after lifting off from a launch pad.About 80 percent of S&P 500 companies that have posted quarterly earnings this season have topped analysts’ estimates for profit, while 62 percent beat sales projections, data compiled by Bloomberg show.
The MSCI Emerging Markets Index jumped 1.2 percent, taking its advance over two days to 2.7 percent, the most since November.
The Shanghai Composite Index (SHCOMP) rose for a second day, climbing 1.5 percent. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong jumped 1.7 percent, recover losses since protesters and police clashed outside the government’s headquarters on Sept. 26.
Ruble Slides
Pro-democracy leaders have set conditions to resume talks with the government, potentially paving the way to end demonstrations that have stretched into a fifth week.The ruble weakened 0.8 percent to 42.8290 per dollar and bringing this month’s drop to 7.5 percent, the most among 24 developing nations. The slide in the face of $24 billion of interventions is stoking speculation the Bank of Russia will accelerate its switch to a free float. The central bank, which plans to stop managing the ruble in 2015, is scheduled to meet Oct. 31.
Ukraine’s Energy Minister Yuri Prodan is scheduled to meet his Russian counterpart Alexander Novak in Brussels today as talks resume on securing winter gas supplies after Ukrainian voters elected pro-European parties to power.
Bloomberg’s U.S. Treasury Bond Index rose 1.3 percent in October through yesterday as signs of an uneven U.S. economic recovery caused investors to lower their outlooks for interest rates next year.
Italy’s 10-year yield dropped three basis points to 2.51 percent and France’s declined two basis points to 2.26 percent.
Krone Tumbles
Norway’s krone tumbled after reports showed retail sales unexpectedly shrank in September and unemployment increased more than analysts estimated in August. It slid 0.6 percent to 8.4719 per euro, a fourth straight drop.The dollar was little changed at $1.2743 per euro and 108.09 yen. The Bloomberg Dollar Spot Index is set for its first monthly decline since June after traders pushed back bets on higher Fed interest rates.
West Texas Intermediate oil rose 1 percent to $82.23 a barrel. U.K. natural gas rose as much as 2.1 percent to 53.70 pence per therm, the highest in more than seven months, on restrictions at an import terminal of Norwegian gas in Scotland.
Soybean meal traded near its highest level in four months as meat prices close to a record spurred demand for animal feed. December futures rose 2.3 percent to $383.60 per 2,000 pounds on the Chicago Board of Trade, the biggest gainer on the 22-member Bloomberg Commodities Index.
(A previous version of this story was corrected to say Treasuries headed for best month since January.)
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