Stocks rise on Spain bailout optimism, earnings while euro gains

Earnings Season

Goldman Sachs Group Inc., the fifth-largest U.S. bank by asset, slipped following yesterday’s 3.6 percent rally. The firm reported better-than-forecast profit as investments gained and revenue more than doubled on a rebound in fixed-income trading.

Citigroup climbed as more than 41 million shares changed hands, about triple the five-day daily average. The bank’s board concluded that Pandit had mismanaged operations, leading to setbacks with regulators and a loss of credibility with investors, a person with knowledge of the discussions said. Pandit told Bloomberg Television the decision to leave was his and was made with the board’s support.

Almost eight shares rose for each that fell in the Stoxx Europe 600 Index, which posted the first back-to-back advance since Sept. 12. Bellway Plc climbed 3.2 percent to the highest price in almost five years after the U.K. homebuilder said annual profit increased 58 percent. Petropavlovsk Plc, a miner of gold in Russia, added 3.1 percent in London trading after reporting a gain in production.

In Germany, the ZEW Center for European Economic Research’s index of investor and analyst expectations rose to minus 11.5 this month from minus 18.2 in September, according to a Bloomberg survey of economists. Economists had forecast a reading of minus 14.9, according to the median of 36 estimates in a Bloomberg News survey.

‘Some Momentum’

“It does feel like there’s some momentum there in the economy,” said Matt Riordan, who helps manage about $6.5 billion in Sydney at Paradice Investment Management Pty. “We’ve got a reasonable rebound.”

The S&P GSCI Index of commodities trimmed an earlier 0.6 percent advance. Nickel and zinc lost at least 0.9 percent to lead declines among eight of 24 raw materials, while cocoa, copper and gold rose the most. Crude was little changed below $92 a barrel. Inventories in the U.S., the world’s biggest oil user, rose 1.5 million barrels last week, according to a Bloomberg News survey before a government report tomorrow.

The dollar fell the most against the currencies of South Africa and Denmark, losing at least 0.8 percent against each. Japan’s currency depreciated as much as 0.4 percent to 78.97 per dollar, its fourth straight decline, taking it to the weakest level since Sept. 19. It weakened 1 percent to 102.88 yen per euro.

<< Page 2 of 3 >>

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome