Investors averse on geopolitical turmoil

Google (NASDAQ:GOOG) posted revenue that exceeded analysts’ estimates. General Electric Co. (NYSE:GE) advanced 0.7 percent as profit climbed 8 percent to $3.9 billion in its second quarter. IBM (NYSE:IBM) fell after saying revenue dropped for a ninth quarter. AbbVie Inc. (NYSE:ABBV) lost 0.9 percent after agreeing to buy Shire Plc.

Confidence report

Thomson Reuters and the University of Michigan release the first reading of their consumer-confidence index at 9:55 a.m. New York time. The measure probably climbed to 83 this month from 82.5 in June, according to estimates compiled by Bloomberg.

Treasury 10-year yields climbed to 2.46 percent after yesterday tumbling eight basis points to 2.45 percent, the lowest rate in about seven weeks. German bonds were little changed, following a three-day run of gains.

Shares in European airlines dropped. Air France-KLM dropped 1.4 percent, while low-cost carrier Ryanair Holdings Plc retreated 1.3 percent.

Volvo AB (OTCMKTS:VOLVY) slid 5.3 percent, leading losses by industrial goods and services companies. The world’s second-biggest truckmaker released earnings that missed analysts’ estimates. Ericsson AB surged 8.2 percent after the supplier of equipment for wireless networks reported second-quarter sales and profit margins that exceeded analysts’ estimates.

Indonesia’s rupiah, South Africa’s rand and Turkey’s lira led gains among higher-yielding currencies as the yen weakened.

Japan’s currency fell against the euro for the first time in four days, weakening 0.2 percent to 137.07. It appreciated to 136.71 per euro earlier today, the strongest level since Feb. 5.

Geopolitical risks

“The market is quite insulated to geopolitical risks,” said Lyn Graham-Taylor, a fixed-income strategist at Rabobank International in London. “The amount of central-bank liquidity has desensitized the market to these events. It looks, as things currently stand, as though we are not going to get a huge bid for havens.”

Gold, which climbed 1.5 percent in the previous session, declined to $1,310.79 an ounce in London trading.

Industrial metals declined. Copper retreated 0.6 percent to $7,026 a metric ton on the London Metal Exchange, heading for the first decline in five weeks on speculation demand will slow in China, the biggest user of the metal. Nickel fell 2.5 percent to $18,730 a ton.

West Texas Intermediate crude advanced to $103.34 a barrel after surging 2 percent yesterday, the most in a month. Month- ahead U.K. gas, a European benchmark, fell 2 percent after gaining 6.9 percent yesterday, its biggest jump since March 3, according to broker data compiled by Bloomberg.

<< Page 2 of 2

Copyright 2014 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome