Commodities drop with U.S. stocks before Fed as Treasuries climb

Slipping Dollar

The dollar weakened 0.4% at 102.63 yen after touching 103.92 yen Dec. 13, the strongest level since October 2008. The greenback was little changed at $1.3765 per euro. The 17-nation common currency traded down 0.3% at 141.26 yen.

The difference in yields on Treasury five- and 30-year securities widened to as much as 2.4 percentage points. Thirty- year bond yields jumped as much as two basis points, or 0.02 percentage point, after the CPI data before declining two basis points to 3.87%. The five-year note yield slipped amid bets Fed policy makers may offer more guidance on their timing for an eventual increase in the benchmark interest-rate target. The Treasury is holding four note auctions this week.

U.S. government securities due in a decade and longer have fallen more than 11% in 2013 to yesterday, the biggest loss among 144 debt indexes tracked by Bloomberg and the European Federation of Financial Analysts Societies.

European Movers

Almost two shares fell for each that rose in the Stoxx 600. CGG SA tumbled 17% in Paris after the world’s biggest seismic surveyor of oilfields cut its 2013 profit forecast. DKSH Holding Ltd. dropped 3.8% in Zurich after Credit Suisse Group AG cut its rating on the market-expansion services company.

Wirecard AG gained 1.5% in Frankfurt after Exane BNP Paribas raised its rating on the German maker of electronic- payment software. Zurich Insurance Group AG climbed 1.9% in Zurich as Swiss Re Ltd.’s Chief Financial Officer George Quinn quit to join Switzerland’s biggest insurer.

The ZEW Center for European Economic Research said that its index of investor and analyst expectations, which aims to predict economic developments six months in advance, jumped to 62.0 from 54.6 in November. Economists predicted an increase to 55.0, according to the median of 35 estimates in a Bloomberg News survey.

The MSCI Emerging Markets Index rose less than 0.1% after six days of declines, with the the Philippine Stock Exchange PSEi Index leading gains in Asia, increasing 2%.

Turkey Probe

The Turkish lira depreciated 0.4% after local media said that sons of the economy and interior ministers and state- run Turkiye Halk Bankasi AS’s chief executive officer were among those arrested as part of a corruption probe. The Borsa Istanbul National 100 Index of Turkish stocks dropped 5.2%, the steepest decline since June.

The Peruvian new sol, Colombia’s peso and South African rand were the worst performers today out of 24 emerging-nation currencies monitored by Bloomberg.

The Aussie dollar touched NZ$1.0763, the lowest level since October 2008, as Australia forecast a wider budget deficit while New Zealand projected a bigger operating surplus.

In its mid-year economic forecast today, the Australian government said the budget deficit will increase to A$47 billion ($42 billion) in the year through June, from an August projection of A$30.1 billion. In contrast, New Zealand forecast an operating surplus of NZ$86 million ($71 million) in the year through June 2015, from a May projection of NZ$75 million, Finance Minister Bill English said in a fiscal update today.

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