Stocks rose for the seventh day, the longest gain since 2011, oil fell and the yen weakened as data showed China’s economy is improving and Russia bid to get Syria to surrender its chemical weapons. Yields on Treasuries, bunds and gilts rose, while Verizon Communications Inc. prepared to sell what may be a record amount of bonds.
The MSCI All-Country World Index gained 0.6% to 377.46 at 8:32 a.m. in New York, and Standard & Poor’s 500 Index futures increased 0.7%. Dubai shares jumped the most since 2009 and the Indian rupee strengthened. Japan’s currency declined against all of its 16 major counterparts. Treasury 10- year note yields rose five basis points to 2.96%. Yields on similar maturity bunds and gilts touched 2% and 3%, respectively. West Texas Intermediate oil slid 1.9% as Interfax reported Syria accepted Russia’s proposal.
China’s industrial production rose 10.4% in August from a year earlier and retail sales gained 13.4%, the National Bureau of Statistics said on its website today. U.S. President Barack Obama, who will address the nation tonight, said in an interview with NBC News he isn’t confident he’ll get congressional approval for a military strike against Syria and that the Russian proposal to convince Syria to give up its chemical weapons is a “potentially positive development.”
“The recent data out of China has been signaling a bit of a recovery,” Mark Harris, who helps oversee about $1.2 billion as fund manager at City Financial in London, said in an interview. “You’re beginning to see traction globally. This is an opportunity to buy cyclical stocks even though I do expect some sort of a contained pull-back this year and volatility may pick up.”
The Stoxx Europe 600 Index advanced 1.2% to the highest level since May as all 19 industry groups climbed. The volume of shares changing hands was 35% greater than the 30-day average, according to data compiled by Bloomberg.
Societe Generale SA and Royal Bank of Scotland Group Plc increased more than 3%. Neste Oil Oyj surged 13% to a five-year high as the Finnish refiner raised its profit forecasts. Alcatel-Lucent SA, which manufactures telecommunications equipment, jumped 5.9% to a two-year high and PSA Peugeot Citroen, Europe’s second-biggest carmaker, rose 4.4%. Glencore Xstrata Plc rallied 2.9% after boosting its estimate for financial gains from the merger with Xstrata Plc.