Stocks, commodities drop as Treasuries rise on budget deadlock

Durable Goods

Bookings for non-defense capital goods excluding aircraft, a proxy for future business investment, rose 1.7 percent last month, the most since May, the Commerce Department said. Orders for all durable goods were little changed, beating the median forecast of economists surveyed by Bloomberg that projected a 0.7 percent drop.

Home prices rose in the year ended in September by the most since July 2010, showing the recovery in the U.S. real estate market is a source of economic strength. The S&P/Case-Shiller index of values in 20 cities climbed 3 percent from September 2011, after advancing 2 percent in the year to August. The median forecast of 29 economists in a Bloomberg survey projected a 3 percent gain.

U.S. consumer confidence rose in November to the highest level in more than four years, a sign household spending will keep growing. The Conference Board’s confidence index climbed to 73.7, the highest since February 2008, from a revised 73.1 reading the prior month. The median forecast of 75 economists surveyed by Bloomberg projected a reading of 73.

European Markets

Three shares gained for every two that declined in the Stoxx 600. The gauge slipped 0.5 percent yesterday, halting a five-day advance. Germany’s 10-year yield touched a three-week high after the Greek aid deal was struck.

The euro weakened against 12 of 16 major peers, losing more than 0.5 percent versus the South African rand and South Korean won, on concern an aid deal for Greece may falter. Euro-area finance chiefs and the International Monetary Fund said they would cut Greece’s interest rates and give it more time to pay back rescue loans after the repurchase of government debt.

“Giving Greece more money is not the solution to any problem -- it’s a Band-Aid at this stage,” said Fabian Eliasson, head of U.S. currency sales at Mizuho Financial Group Inc. in New York. “Any kind of rattling news that something will jeopardize the deal, or further demands, is going to have a negative effect.”

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