Commodities rise on China as Treasuries gain on consumer prices

Europe Movers

Alcatel-Lucent SA soared 8.4 percent after the company reached a 1.6 billion-euro ($2.1 billion) financing deal. The French phone-equipment maker’s bonds rose to the highest in eight months.

Spain’s 10-year bond yield fell four basis points to 5.36 percent, while the rate on similar-maturity Italian debt dropped eight basis points to 4.57 percent.

The Shanghai Composite Index gained 4.3 percent, its biggest rally since October 2009. Hong Kong’s Hang Seng Index rose 0.7 percent. Japan’s Topix Index, a broad gauge of stocks, closed above 800 for the first time since April.

The reading on the Chinese purchasing managers’ index was 50.9, according to HSBC Holdings Plc and Markit Economics, compared with the 50.8 median estimate of economists surveyed by Bloomberg News. November’s final reading was 50.5, the first time in 13 months that the gauge exceeded the 50 mark dividing expansion from contraction.

Manufacturing

Japan’s large manufacturers became the most pessimistic since March 2010, the central bank’s quarterly survey showed. The Tankan index fell to minus 12 in December from minus 3 in September, its fifth straight negative reading. The median estimate of economists surveyed by Bloomberg News had called for a reading of minus 10. A negative figure means that pessimists outnumber optimists.

The MSCI Emerging Markets Index snapped a seven-day rally, declining 0.1 percent, as technology companies fell.

The Egyptian pound strengthened 0.1 percent to 6.1684 per dollar, recovering from its weakest level in eight years, as supporters and opponents of President Mohamed Mursi plan protests before a referendum on a draft constitution that has polarized voters. Cairo and nine other governorates will vote tomorrow, with the rest of the country taking part a week later.

Bloomberg News

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