U.S. stocks rose and copper helped lead gains in commodities after reports showed American durable- goods orders and home prices increased more than forecast. Treasuries fell while Italian and Spanish bonds gained.
The Standard & Poor’s 500 Index advanced 0.6% at 10:13 a.m. in New York while the Stoxx Europe 600 Index added 0.3%. Copper and oil gained at least 0.6%. Italy’s 10-year bond yield slid seven basis points to 4.54% and Spain’s dropped five basis points to 4.91%, while the rate on U.S. Treasuries increased one point to 1.93%. The euro was up 0.1% at $1.2866.
Bookings for U.S. goods meant to last at least three years rose 5.7%, the most since September, the Commerce Department said, while the S&P/Case-Shiller index of home prices increased by the most since 2006. The data overshadowed bigger- than-forecast declines in consumer confidence and sales of new homes.
“The overall trend continues to show improvement for the U.S. despite some of the fiscal challenges,” Henk Potts, who helps oversee $282 billion as an equity strategist at Barclays Plc in London, said in a phone interview. “Markets don’t go up in a straight line, and there is potential for pullbacks, but we still believe the fundamentals are very supportive.”
The S&P 500 rebounded from yesterday’s 0.3% decline, triggered after the bailout of Cyprus spurred concern bank deposits in other euro-area nations may be subject to levies to pay for rescues in the future.
Homebuilders climbed after the S&P/Case-Shiller index of property values in 20 cities increased 8.1% in January from the same month in 2012, exceeding the 7.9% median forecast by economists in a Bloomberg survey.
Another report showed the Conference Board’s index declined to 59.7 from a revised three-month high of 68 in February. Economists surveyed by Bloomberg projected the March measure would fall to 67.5. New-home sales declined 4.6%, worse than the 3.9% median estimate.
Gains in European stocks were led by financial and construction stocks. A gauge of telecommunications companies dropped as Telefonica SA slipped 4.8% when trading resumed after a suspension. The Spanish mobile-phone operator is selling 990 million euros of treasury stock to reduce its debt. Telecom Italia SpA dropped 3.6% as Barclays Plc and Bank of America Corp. downgraded the stock.
Jeroen Dijsselbloem, who heads the group of euro-area finance ministers, said in a statement yesterday aid programs are “tailor-made,” after earlier indicating the Cypriot bank- recapitalization plan may be replicated elsewhere.
Celesio AG gained 4.5% after the German drug wholesaler reported that earnings before interest, taxes, depreciation and amortization climbed in 2012.
The S&P GSCI gauge of 24 commodities advanced for a third day, rising 0.4%. U.S. natural gas futures gained for the first day in five, rising 0.5% on the New York Mercantile Exchange. The futures have advanced 16% this year.
The advance on Italian bonds reversed most of yesterday’s decline. European Central Bank executive board member Benoit Coeure said today the institution will do everything it can within the terms of its mandate to preserve the euro.
Italian borrowing costs dropped at the sale of 8.5 billion euros ($10.9 billion) six-month bills today. The rate decreased to 0.831%, from 1.237% at an auction of similar- maturity debt Feb. 26.
Democratic Party leader Pier Luigi Bersani has two days left to overcome a shortfall of support in parliament, after President Giorgio Napolitano gave him a mandate on March 22 to try to form a government. Bersani will meet adversary Silvio Berlusconi’s deputies at the People of Liberty party today.
“With the political risk in Italy continuing, it will be hard for the euro to make any headway,” said Yuki Sakasai, a foreign-exchange strategist at Barclays Plc in New York.
The MSCI Emerging Markets Index added 0.6%, gaining for a second day as benchmark gauges in Thailand and the Philippines gained at least 1%. The Shanghai Composite Index fell 1.3%, the most in a week, after the China Securities Journal said many banks started to control the scale of loans for property development.