Global stocks climb to 6-year high on IMF, Apple

ARM, Dialog

ARM Holdings Plc, the Cambridge, England-based designer of chips for the iPhone, increased 3.9% today and Dialog Semiconductor Plc rose 3.4%. Lanxess AG strengthened 4.4% after the chemical maker’s chief executive officer said the company will reach its full-year forecast for earnings before interest, tax, depreciation and amortization.

Asian equities climbed for a fifth day, the longest streak since September, with technology shares gaining 0.4%.

Yields on five-year U.S. notes rose four basis points to 1.68%, reaching a three-month high. Thirty-year bonds advanced, pushing yields down to 3.83%, amid wagers inflation will stay in check as the Fed slows asset purchases.

Spanish bonds fell, with 10-year yields reaching a two-week high at 4.20%, amid speculation domestic banks are reducing their holdings of the securities before the European Central Bank reviews their balance sheets next year.

The Bloomberg Dollar Index retreated 0.1%. The dollar was little changed at 104.08 yen. It climbed to 104.64 on Dec. 20, the highest since October 2008. The greenback declined 0.2% to $1.3693 per euro. Japan’s currency slipped 0.1% to 142.49 per euro.

China Rates

The cost of insuring against losses on corporate bonds fell to the lowest in almost four years. The Markit iTraxx Europe Index of credit-default swaps on 125 investment-grade companies declined 2.6 basis points to 68.94 basis points.

China’s seven-day repurchase rate, a gauge of funding availability in the banking system, jumped 124 basis points today to 8.84%, the highest level since June 20, according to a daily fixing from the National Interbank Funding Center. The rate, which has more than doubled from 4.37% in the past week, touched a record 10.77% in June.

The yuan advanced 0.02% to close at 6.0702 per dollar in Shanghai, the strongest since the government unified the market and official exchange rates at the end of 1993. The People’s Bank of China boosted the daily fixing today by 0.06%, the most since Dec. 9, to 6.1161 per dollar.

Turkish Stocks

The Borsa Istanbul 100 Index of Turkish shares fell 2.1%, extending losses to 9% since a corruption investigation targeting Prime Minister Recep Erdogan’s government was announced Dec. 17. Emlak Konut CEO Murat Kurum and two board members returned to work yesterday after being questioned as part of the police investigation.

U.S. natural gas advanced 1% after earlier climbing to the highest since July 2011. Forecasters including Commodity Weather Group LLC in Bethesda, Maryland, predicted that below- normal temperatures in the central U.S. will spread through the East from Dec. 28 through Jan. 6.

Crude oil dropped 0.4% to $98.91 a barrel, retreating from a two-month high.

Gold declined 0.6% to $1,197 an ounce on speculation less U.S. stimulus and an improving economy will cut demand for bullion as a protection of wealth. Gold has tumbled 29% this year, set for its biggest annual drop since 1981, as some investors lost faith in the metal as a store of value. It climbed the previous 12 years.

www.bloomberg.com

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