U.S. stocks rally as yen drops, Treasuries fluctuate before Fed

European Movers

The Stoxx Europe 600 Index closed little changed, with trading volume about 19% below the average over the past 30 days.

Among stocks moving in Europe, Kabel Deutschland Holding AG rose 3.7% to a record as Liberty Global Plc made a preliminary takeover offer for Germany’s largest cable provider, pitting the John Malone-controlled company against Vodafone Group Plc. Danske Bank A/S slid 6.1% after the Financial Supervisory Authority said Denmark’s biggest lender had underestimated its risky assets.

About four stocks gained for every three that fell in the MSCI Emerging Markets Index, which lost 0.4%. Brazil’s Ibovespa added 0.7% after slumping 2.6% in the previous two sessions. The Hang Seng China Enterprises Index slipped 0.1% after official data showing Chinese home prices climbed in almost all cities in May stoked concern the increases will limit the scope for monetary stimulus.

‘Precautionary Arrangements’

Portugal’s 10-year bond yield dropped 14 basis points to 6.11% after European Union Economic and Monetary Affairs Commissioner Olli Rehn said the EU is looking at possible “precautionary arrangements” that might help the nation exit its aid program.

The yen retreated against all 16 major peers, sliding 1.1% to 127.66 per euro. Australia’s dollar fell 0.6% to 94.86 U.S. cents after the Reserve Bank indicated the currency may weaken further.

The Swiss franc advanced versus 15 of 16 major peers after the lower house of parliament voted against further deliberations of a law allowing banks to cooperate with the U.S., making it less likely the bill will pass.

The JPMorgan Global FX Volatility Index increased to 10.45% from 10.25% yesterday after climbing to a one- year high of 11.43% on June 13.

Nickel, Copper

Nickel, the worst performer this year among the six main industrial metals traded on the London Metal Exchange, retreated 1% to $14,150 a metric ton. The metal declined as much as 1.8% to trade at the lowest price since 2009. Copper for delivery in three months declined for a second day, falling 1.1% to a six-week low of $7,005 a ton.

Natural gas gained 0.5% to $3.894 a million British thermal units after jumping 3.8% yesterday, the biggest increase in seven weeks, on forecasts for hotter weather in late June that may spur demand from power plants. West Texas Intermediate crude added 0.8% to $98.50 a barrel.

Wheat advanced on concern that rain in parts of the U.S., the world’s largest exporter, will further delay harvesting that’s lagged behind last year’s pace. The contract for delivery in September increased 1% to $6.9475 a bushel on the Chicago Board of Trade. Soybeans for November delivery gained 0.3% to $12.8975 a bushel.

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