Dollar weakens as U.S. stocks fluctuate while commodities rally

‘Upside’ Surprise

“Could sell in May have started in the end of the month, rather than the usual? One could easily infer that from the performance of the last three days,” the strategist wrote. “However, history says, but does not guarantee, that the S&P 500’s performance in June could surprise to the upside.”

The Stoxx Europe 600 Index fell 0.8% today, trimming a drop of as much as 1.2%.

Roche Holding AG sank 3.7%, the most since 2011, after a study showed that its Avastin drug failed to extend the lives of patients with a type of brain cancer. Munich Re and Hannover Re slipped at least 2.8%, leading reinsurers lower, as storms across central Europe caused rivers to swell, flooding Prague. Polymetal International Plc added 1.9% after JPMorgan Chase & Co. raised its rating on the shares.

The cost of insuring corporate bonds with credit-default swaps rose for a fourth day, to the most since April 26. The Markit iTraxx Europe Index of swaps linked to 125 investment- grade companies increased four basis points to 108 basis points.

Emerging Markets

The MSCI Emerging Markets Index lost 0.7%, extending last month’s 2.9% drop. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong sank 0.5%. India’s Sensex slid 0.8% after factory output in May fell to the lowest level in 50 months. Russia’s dollar- denominated RTS Index slipped 0.9% as manufacturing slowed, while Brazil’s Ibovespa rebounded 0.5% after slumping 5.1% last week.

The yield on Turkey’s two-year notes jumped 71 basis points to 6.78%, the biggest increase on record, and the lira declined for a fifth day, while the nation’s benchmark equity index tumbled 10%, the most since 2003. Clashes in Istanbul began May 31 and continued late yesterday in Ankara and Istanbul as protesters took to the streets calling for Prime Minister Recep Tayyip Erdogan to resign.

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