Treasuries, U.S. stocks climb on housing report; oil, gold rally

Trading Halt

Nasdaq OMX Group Inc. rose 1.2% after the shares slid the most in more than four months following a trading disruption yesterday. Nasdaq halted trading of its listed stocks for three hours yesterday because a computer problem left some investors without quotes and the company did not want to have “information asymmetry,” Chief Executive Officer Robert Greifeld said in interviews today.

The Chicago Board Options Exchange Volatility Index, or VIX, dropped 5.3% to 13.98. The equity volatility gauge has fallen 2.7% in the past five days, halting two consecutive weeks of advances.

The Stoxx Europe 600 Index increased 0.4%, trimming its decline for the week to 0.5%. An index of household confidence in the euro zone improved for a ninth month to the highest level since July 2011, the European Commission in Brussels said in a preliminary report. U.K. gross domestic product increased 0.7% in the second quarter from the previous period, when it rose 0.3%, the Office for National Statistics said in London.

A gauge of European oil and gas stocks rose the most, advancing 1.2%. Glencore Xstrata Plc and Rio Tinto Group led gains in mining companies.

Emerging Markets

The MSCI gauge of shares from 21 developing countries rebounded as its worst week in two months drove shares to a six- week low. About $1.5 trillion has been erased from the value of emerging-market equities since Fed Chairman Ben S. Bernanke said on May 22 policy makers could scale back bond buying.

Benchmark equity gauges in India, Brazil and South Korea gained more than 1%. The rupee jumped 2% against the dollar, the real gained 3.4%. The Thai baht and the Malaysian ringgit strengthened, rebounding from three-year lows.

“Emerging markets should remain very volatile for the remainder of this year as governments try to restore investor confidence and stem capital outflows,” Vana Bulbon, chief executive officer at UOB Asset Management (Thailand) Co. Ltd., which manages about $6.4 billion, said in Bangkok. “The global outlook has been improving led by growth in the U.S, while economies in Europe and China have bottomed out.”

Government Securities

The 10-year Treasury yield fell seven basis points to 2.82%. The yield climbed to 2.93% yesterday, the highest since July 2011.

Treasuries due in 10 years and longer are the worst performing government securities in the Group of Seven this month, tumbling 3.7% through yesterday, before the U.S. sells $98 billion of notes and bonds next week.

Gold jumped to an 11-week high as the home-sales data boosted speculation the Fed will maintain fiscal stimulus. Futures for December delivery rose 1.8% to $1,395.80 an ounce on the Comex in New York. Earlier, the price reached $1,398.70, the highest since June 7. Silver climbed 3% to $23.781 an ounce.

Crude futures increased 1.3%, the most in two weeks, to $106.42 a barrel. Prices fell 1% this week.

The dollar declined 0.2% to $1.3382 per euro, erasing an earlier advance. The yen was little changed at 98.69 per dollar after touching 99.15, the weakest level since Aug. 5. Japan’s currency dropped 0.2% to 132.06 per euro, having fallen 1.6% this week.

www.bloomberg.com

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