Stocks gain with copper on stimulus bets; soybeans set record

July 19 (Bloomberg) -- Stocks rose for a third day, copper gained and the dollar weakened amid better-than-estimated corporate earnings and speculation monetary easing by global central banks will spur economic growth. Soybeans rose to a record as the worst drought since 1956 scorched U.S. fields.

The MSCI All-Country World Index advanced 0.6 percent at 8:45 a.m. in New York and Standard & Poor’s 500 Index futures added 0.5 percent. Copper climbed 2 percent in London and oil increased for a seventh day. Soybeans jumped 1.7 percent, wheat traded at a four-year high and corn rose to within 1 percent of a record. The Dollar Index retreated 0.3 percent to a two-week low. Spain’s 10-year bonds fell, pushing the yield above 7 percent, as borrowing costs increased at a debt auction.

Companies from International Business Machines Corp. to Akzo Nobel NV and Electrolux AB reported earnings that topped estimates. German lawmakers are due to vote to approve aid of as much as 100 billion euros ($123 billion) for Spain’s banks. First-time U.S. jobless claims increased and a report later today may show U.S. leading economic indicators fell, boosting prospects of further stimulus from the Federal Reserve.

“The market is pricing in further stimulus from the Fed,” Henk Potts, an equity strategist at Barclays Plc in London, said in an interview. His company oversees $239 billion. “Every time the Fed has acted, it’s driven up risky assets, so it could provide another boost to sentiment.”

China Support

China has “relatively large” room to boost fiscal spending to support economic growth as its budget deficit is still small and at a reasonable level, a government researcher said. The Bank of England restarted bond purchases this month to aid the economy and said the near-term outlook has “weakened.”

The Stoxx Europe 600 Index advanced 0.8 percent to the highest level since April 4 as Electrolux and Akzo Nobel climbed more than 4 percent.

Sandvik AB, the world’s biggest maker of metal-cutting tools, rallied 5 percent in Stockholm after reporting second- quarter profit that beat estimates on manufacturing demand in North and South America. Remy Cointreau SA surged 4.9 percent to a record as France’s second-largest distiller had first-quarter revenue growth that exceeded projections.

The gain in S&P 500 futures indicated the U.S. equities gauge will rise for a third day. International Business Machines Corp. increased 2.3 percent in pre-market New York trading after raising its full-year earnings forecast. EBay Inc., the world’s largest Internet marketplace, jumped 6 percent after reporting second-quarter sales and profit that beat estimates.

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