S&P 500 falls from record while commodities gain as dollar drops

Coffee Jumps

West Texas Intermediate oil climbed for the seventh time in eight sessions and reached $98.51, the highest price since October. U.S. oil inventories probably fell for a second week, according to analysts polled by Bloomberg before a report due tomorrow.

Arabica-coffee futures surged 3.9% as inventories dropped amid speculation that roasters will use more of the variety as supplies of robusta beans shrink. Stockpiles of arabica, brewed by specialty companies including Starbucks Corp., have slumped to a the lowest level since February, ICE Futures U.S. data show. Inventories of robusta, used in instant brands, were the smallest since at least 2002, according to NYSE Liffe figures.

Gauges of auto and technology companies led losses in European stocks, each falling more than 1.1%. Royal Vopak NV lost 2.1% after saying it may miss its 2016 earnings forecast. Victrex Plc jumped 4.2% after proposing a final dividend that exceeded forecasts. CGG SA advanced 2.3% after Raymond James Financial Inc. recommended buying the stock.

European Yields

The spread between Italian and German 10-year bond yields narrowed to as low as 222 basis points, or 2.22 percentage points, the least since July 2011. The yield on Spain’s 10-year bonds fell seven basis points to 4.04%, narrowing the spread with similar-maturity German bunds to 218 basis points, the least since June 2011.

The euro added 0.2% to $1.3767 while the yen climbed 0.5% versus the dollar and 0.3% against the euro after touching five-year closing lows against both currencies this week. The Bloomberg dollar gauge, which tracks the greenback against 10 major peers, dropped 0.3% to the lowest level since Oct. 31.

Ukraine’s hryvnia weakened the most since anti-government protests erupted last month as a plunge in the nation’s foreign reserves to a seven-year low left policy makers with fewer resources to defend the currency. The hryvnia, which is managed by Ukraine’s central bank to limit volatility and losses for exporters, sank 0.9% to 8.2475 per dollar in Kiev.

Emerging Stocks

The Philippine Stock Exchange Index dropped 2%, the most in more than two months after a record increase in electricity prices boosted concern inflation will accelerate. India’s S&P BSE Sensex lost 0.3%, snapping a three-day gain. The MSCI Emerging Markets Index lost 0.1% after surging 1.1% yesterday.

The Hang Seng China Enterprises Index of mainland Chinese companies traded in Hong Kong lost 0.4% and the Shanghai Composite Index slid 0.1%. Chinese data showed factory production rose 10% from a year earlier, compared with a median projection of 10.1% in a Bloomberg News survey.

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