Glencore Xstrata Plc dropped 1.6% in London trading after writing down $7.7 billion of assets acquired in the Xstrata Plc takeover three months ago. GSW Immobilien AG rallied 6.3% in Frankfurt after Deutsche Wohnen AG offered to buy Berlin’s biggest publicly traded residential landlord in an all- share transaction. Deutsche Wohnen fell 4.7%.
The MSCI Emerging Markets Index fell for a fourth day and reached the lowest level since July 11. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong slid 2.9%. Benchmark gauges in Brazil, South Korea, Malaysia and Thailand dropped at least 1.5%.
Brazil’s Ibovespa fell for the first time in 10 days, snapping its longest rally since August 2010, as commodity producers tumbled.
The Jakarta Composite Index sank 3.2%, extending a four-day slide to 11%. Indonesia’s current-account deficit widened to a record last quarter and the economy grew less than 6% for the first time since 2010 in the second quarter, data showed this month.
The S&P GSCI gauge of 24 commodities lost 0.6% as West Texas Intermediate oil declined 2% to $104.96 a barrel. Brent crude added 0.2% to $110.09. Soybeans fell 1% and corn dropped 2.1% on prospects for bigger crop harvests this year.
Treasury yields retreated after reaching almost 2.90% yesterday, the highest level since July 2011.
Price swings as measured by the Merrill Lynch Option Volatility Estimate MOVE Index climbed to 99.48 yesterday, the highest level since July 9. The average for 2013 is 68.
The yen strengthened for the first time in three days against the dollar on increased demand for the relative safety of the Japanese currency. The yen appreciated 0.3% to 97.28 per dollar. The euro added 0.7% to $1.3423.
Australia’s dollar fell for a second day, following its biggest drop this month, after the Reserve Bank said the currency’s direction will be important in determining policy. New Zealand’s dollar tumbled 1.1% against the dollar after the country’s central bank chief said it will impose bank lending restrictions, reducing the need for interest-rate increases. Norway’s krone slid as a report showed the economy expanded less than analysts estimated in the second quarter.
Australia’s currency dropped 0.2% to 90.89 U.S. cents. New Zealand’s dollar slid 1.1% to 79.83 U.S. cents.