U.S. stocks gain on budget optimism as oil falls on supply data

European Markets

The Stoxx Europe 600 Index closed up 0.2 percent, after rising as much as 0.4 percent. A gauge of mining companies surged to a four-week high as Anglo American Plc and Rio Tinto Group climbed at least 2.5 percent. Nokia Oyj rallied 9.7 percent as China Mobile Ltd. agreed to carry the Finnish mobile- phone maker’s flagship Lumia 920T smartphone.

Tesco Plc advanced 3.3 percent as the U.K.’s largest grocery company said it will likely leave the U.S. after announcing a review of its Fresh & Easy unit.

Europe’s equity benchmark will rally 11 percent by the end of the first quarter of 2013 if it breaks above a key resistance, according to Natixis. The Stoxx Europe 600 will climb as high as 307 if it crosses above 278, said Ouri Mimran, a technical strategist at Natixis in Paris. The immediate resistance represents the 50 percent Fibonacci retracement of the decline from July 2007 through March 2009 in the aftermath of the financial crisis.

Spanish Yields

Spain’s bonds plunged as the nation sold 4.25 billion euros ($5.56 billion) of bonds, less than the 4.5 billion-euro target. Ten-year Spanish bonds increased 15 basis points to 5.40 percent. Italian 10-year securities dropped for the first time in seven days. German bunds advanced, while French, Belgian and Swiss 10-year rates dropped to record lows as investors sought the safest assets.

Energy commodities led losses in the S&P GSCI Index, with gasoline falling 1.9 percent and crude oil decreasing 0.7 percent to $87.88 a barrel after the U.S. Energy Department said gasoline stockpiles climbed more than forecast.

The MSCI Emerging Markets Index climbed 1.1 percent to the highest level on a closing basis since May. The Shanghai Composite Index increased 2.9 percent, the most since Sept. 7.

China’s regulators abolished a rule limiting insurers’ investments in commercial banks and Xinhua news agency said yesterday after a meeting of top party leaders that China will actively promote urbanization and expand domestic demand. Spain sold 4.25 billion euros ($5.6 billion) of debt due between 2015 and 2022, less than the 4.5 billion-euro target.

Russia’s Micex Index added 1.7 percent and Brazil’s Bovespa index increased 0.2 percent.

Bloomberg News

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