Akzo Nobel NV slid 6.1 percent as Chief Executive Officer Ton Buechner extended his leave from the company. MAN SE fell 3.3 percent after the maker of vehicles and trucks said 2013 will be tougher than this year. Standard Chartered Plc and Axa SA climbed as Deutsche Bank AG raised its rating for the banking and insurance sectors.
Industrial production in the euro area rose 0.6 percent in August from July, the European Union’s statistics office in Luxembourg said today. Economists had projected a drop of 0.4 percent, the median of 36 estimates compiled by Bloomberg. Economic growth in Germany will stagnate in the second half, Bundesbank Jens Weidmann told reporters in Tokyo today.
“The market is nervously trying to focus on where the growth is going to come from,” James Bevan, chief investment officer at London-based CCLA Investment Management Ltd., said on Bloomberg Television’s “On the Move” with Francine Lacqua. “We know the central banks are prepared to print money. That’s absolutely great. What we haven’t seen is any follow through from the fundamental real economy.”
Spain’s two-year note yield dropped 14 basis points to 3.08 percent and 10-year rates declined 14 basis points to 5.63 percent. The nation wants there to be consensus among European governments on any bailout request before deciding whether to ask for help, Deputy Prime Minister Soraya Saenz de Santamaria said yesterday.
The MSCI Emerging Market Index was little changed as Brazil’s Bovespa increased 1.2 percent and Russia’s Micex lost a similar amount. Hong Kong’s Hang Seng gauge advanced 0.7 percent after state-run Central Huijin Investment Ltd. said it will continue market operations after increasing stakes in the nation’s banks.
The BSE India Sensitive 30 Index fell 0.7 percent as Infosys Ltd. slumped the most in six months. The country’s second-largest software services exporter cut its sales-growth forecast and said higher wages and currency fluctuations will hurt profitability.
The rand pared its first weekly advance in five. S&P reduced South Africa’s long-term foreign currency rating to BBB from BBB+ and the local-currency ranking was cut to A-. The outlook for the rating was set at negative. The currency rallied 1 percent earlier today as South African truck drivers agreed to end a strike.
China’s yuan strengthened for a 10th straight week, touching the highest level in 19 years, on speculation the government will announce measures to revive growth in the world’s second-largest economy.