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.
The gain in S&P 500 futures indicated the U.S. gauge will advance for a sixth day. Apple Inc. rose 0.5% in pre- market New York trading before unveiling new iPhone models at an event in Cupertino, California.
The MSCI Emerging Markets Index added 1.5%, rising for a fifth day to a three-month high. The Shanghai Composite Index gained 1.2% and the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong increased 1.6%. The S&P BSE Sensex increased 3.8% and the rupee jumped 2.2% as trading resumed following a holiday. The Jakarta Composite Index added 4%.
Dubai’s DFM General Index climbed 8.5%, the most among 94 equity indexes tracked by Bloomberg worldwide. Benchmark gauges in Abu Dhabi and Qatar jumped more than 4.5%. Israel’s TA-25 Index advanced 1.6%.
Russia sold its first sovereign bonds in euros, along with dollar debt, raising 725 million euros ($962 million) from seven-year securities and $6 billion in bonds due in 2019, 2023 and 2043. South Africa sold $2 billion of 12-year bonds in overseas debt markets after boosting the size of the offering.
The yen slid 0.7% to 100.30 per dollar and 0.3% versus the euro, while the U.S. currency was little changed at $1.3242 per euro. Norway’s krone jumped 1.3% to 7.8616 per euro after inflation accelerated faster than analysts estimated.
Treasury three-year note yields were at 0.87%, almost double the 0.44% average over the past year, as the U.S. prepared to auction $31 billion of the debt. Ten-year gilt yields climbed as much as seven basis points to 3.03%, the highest since July 2011. German government bonds underperformed all their euro-area peers.
Spain’s bonds rallied, pushing 10-year yields below Italy’s for the first time in 18 months. The Italian bonds failed to match the gains in Spanish securities on concern a vote on whether to expel Silvio Berlusconi from Italy’s Senate will destabilize the coalition government.
The yield spread on global investment-grade notes widened for a third day to 123 basis points, the most since Aug. 16, Bloomberg index data show.
Verizon is marketing what may be the biggest bond sale on record to finance the purchase of a stake in its mobile phone unit from Vodafone Group Plc. The offering in as many as eight parts may exceed Apple’s $17 billion issue in April.
Verizon may sell three-, five-, seven, 10-, 20-, and 30- year debt as soon as Sept. 11, according to a person with knowledge of the offering. The New-York based company may also sell securities in euros, pounds, and possibly yen, Societe Generale analysts wrote in a report dated Sept. 8.
The cost of insuring against losses on corporate bonds fell to the lowest in almost a month. The Markit iTraxx Europe Index of credit-default swaps on 125 investment-grade companies decreased 2.5 basis points to 98 basis points, the least since Aug. 14.
WTI dropped for a second day to $107.45 a barrel and gold declined 1.6% to $1,364.83 an ounce. The S&P GSCI gauge of 24 commodities slipped 1.2%, the second consecutive decline as silver retreated 1.9%.
Russia’s Interfax news agency cited Syrian Foreign Minister Walid al-Muallem as saying his government accepted the proposal. Muallem was in Moscow yesterday when Russia first announced its initiative, and said at the time he “welcomed” it.