U.S. stocks retreat with Treasuries, gold after Fed minutes

European Stocks

SAP AG, the world’s biggest enterprise-software company, added 1.7% after UBS AG recommended investors buy the shares.

Kion Group AG slid 2% after its biggest shareholder put a 10.8% stake in the forklift maker on sale. SCOR SE lost 1.2% after Les Echos reported the French reinsurer may take control of Mutre Reinsurer, which is owned by Scor, Matmut and a group of 14 shareholders connected to La Mutualite Francaise.

Spain’s 10-year yield fell as much as seven basis points to 3.74% today, the lowest since December 2009.

Gold futures for February delivery declined 0.3% for a third day of losses and silver futures slid 1.1%. The S&P GSCI gauge of 24 commodities dropped 1.1%, extending the decline this month to 3.7%, the worst start to a year since 2007.

West Texas Intermediate crude for February delivery dropped 1.4% to $92.33 a barrel in New York, the lowest settlement since Nov. 27. The price fell for the sixth time in seven days, as inventories of gasoline and distillates, including diesel fuel and heating oil, each climbed more than twice as much as analysts predicted in the week ended Jan. 3.

Emerging Markets

The MSCI Emerging Markets Index was little changed after five days of losses, trimming an earlier gain of as much as 0.5%. Indian stocks rallied from a three-week low and benchmark gauges in Brazil, the Czech Republic, Indonesia and the Philippines advanced at least 0.3%.

The Hang Seng China Enterprises Index of mainland shares traded in Hong Kong climbed 0.9%, rebounding from a more than two-month low. The Shanghai Composite Index slipped 0.2% on concern the resumption of initial public offerings will divert funds. The China Securities Regulatory Commission approved seven IPOs yesterday, bringing the total number of those approved to 38.

Turkish Stocks

Turkish stocks fell for the first time in three days and the lira weakened after JPMorgan Chase & Co. lowered its recommendation on the country’s equities to underweight from neutral as the outlook for higher rates cut growth prospects. Further “political noise” may drive more pressure on the lira, analysts wrote in an e-mailed report today.

The nation’s ruling party will continue to purge police and judiciary members pursuing corruption charges against government officials and will then seek to prosecute them for attempting a coup, Osman Can, a member of the central committee of Prime Minister Recep Tayyip Erdogan’s Justice and Development Party, said in a Jan. 6 interview in Istanbul.


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