By Kyoungwha Kim & Stephen Kirkland - Sep 10, 2013 5:35 PM GMT+0400
China’s industrial production rose 10.4 percent in August from a year earlier and retail sales gained 13.4 percent, the National Bureau of Statistics said on its website today. Photographer: Tomohiro Ohsumi/Bloomberg
Employees work on the trading floor of the Tokyo Stock Exchange in Tokyo. Photographer: Junko Kimura/Bloomberg
Stocks rose for the seventh day, the longest gain since 2011, oil fell and the yen weakened as data showed China’s economy is improving and Russia bid to get Syria to surrender its chemical weapons. Yields on Treasuries, bunds and gilts increased, while Verizon Communications Inc. prepared to sell what may be a record amount of bonds.
The MSCI All-Country World Index gained 0.8 percent at 9:33 a.m. in New York and theStandard & Poor’s 500 Index (SPX) increased 0.5 percent. Dubai shares surged the most since 2009 and the Indian rupee strengthened. Japan’s currency declined against all of its 16 major counterparts. Treasury 10-year note yields rose four basis points to 2.96 percent. Yields on similar maturity bunds and gilts topped 2 percent and 3 percent, respectively. West Texas Intermediate oil slid more than 2 percent as Interfax reported Syria accepted Russia’s proposal.
China’s industrial production rose 10.4 percent in August from a year earlier and retail sales gained 13.4 percent, the National Bureau of Statistics said on its website today. Photographer: Tomohiro Ohsumi/Bloomberg
Sept. 10 (Bloomberg) -- BlackRock Inc. President Robert Kapito talks about the outlook for global developed and emerging financial markets, and investment strategy. Kapito also discusses Federal Reserve monetary policy and the company's business outlook. He speaks in Hong Kong with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Sept. 10 (Bloomberg) -- Russ Koesterich, chief investment strategist for BlackRock Inc., talks about the outlook for Federal Reserve monetary policy and global emerging markets. He speaks in Hong Kong with Rishaad Salamat on Bloomberg Television's "On the Move." (Source: Bloomberg)
Sept. 10 (Bloomberg) -- Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., talks about global stocks, the impact of Federal Reserve monetary policy on financial markets, and investment strategy. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Employees work on the trading floor of the Tokyo Stock Exchange in Tokyo. Photographer: Junko Kimura/Bloomberg
China’s industrial production rose 10.4 percent in August from a year earlier and retail sales gained 13.4 percent, the National Bureau of Statistics said on its website today. U.S. PresidentBarack Obama, who will address the nation tonight, said in an interview with NBC News he isn’t confident he’ll get congressional approval for a military strike against Syria and that the Russian proposal to convince Syria to give up its chemical weapons is a “potentially positive development.”
“The recent data out of China has been signaling a bit of a recovery,” Mark Harris, who helps oversee about $1.2 billion as fund manager at City Financial in London, said in an interview. “You’re beginning to see traction globally. This is an opportunity to buy cyclical stocks even though I do expect some sort of a contained pull-back this year and volatility may pick up.”
Dow Changes
Goldman Sachs Group Inc., Visa Inc. and Nike Inc. will be added to the Dow Jones Industrial Average, replacing Bank of America Corp., Hewlett-Packard Co. and Alcoa Inc. in the first reshuffling since September 2012.
The changes will boost the number of financial-related companies in the 30-member gauge to five as the fifth-biggest U.S. bank by assets and the largest payment network join JPMorgan Chase & Co., Travelers Cos. and American Express Co. Bank of America is being kicked out even after rallying 109 percent in 2012, the Dow’s largest gain.
Goldman Sachs climbed 2 percent, while Nike jumped 1.8 percent and Visa increased 2.2 percent. Hewlett-Packard lost 1.1 percent and Alcoa slipped 0.7 percent. Bank of America added 0.7 percent.
Banks Rally
The Stoxx Europe 600 Index advanced 1.2 percent to the highest level since May as all 19 industry groups climbed. The volume of shares changing hands was 33 percent greater than the 30-day average, according to data compiled by Bloomberg.
Societe Generale SA and Royal Bank of Scotland Group Plc increased more than 3 percent. Neste Oil Oyj surged 12 percent to a five-year high as the Finnish refiner raised its profit forecasts. Alcatel-Lucent SA (ALU), which manufactures telecommunications equipment, jumped 5.5 percent to a two-year high and PSA Peugeot Citroen, Europe’s second-biggest carmaker, rose 3.2 percent. Glencore Xstrata Plc rallied 2.9 percent after boosting its estimate for financial gains from the merger with Xstrata Plc.
The MSCI Emerging Markets Index added 1.5 percent, rising for a fifth day to a three-month high. The Shanghai Composite Index gained 1.2 percent and the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong increased 1.6 percent. The S&P BSE Sensex increased 3.8 percent and the rupee jumped 2.2 percent as trading resumed following a holiday. The Jakarta Composite Index added 4 percent.
Dubai Rally
Dubai’s DFM General Index climbed 8.5 percent, the most among 94 equity indexes tracked by Bloomberg worldwide. Benchmark gauges in Abu Dhabi and Qatar jumped more than 4.5 percent. Israel’s TA-25 Index advanced 1.6 percent.
Russia sold its first sovereign bonds in euros, along with dollar debt, raising 725 million euros ($962 million) from seven-year securities and $6 billion in bonds due in 2019, 2023 and 2043. South Africa sold $2 billion of 12-year bonds in overseas debt markets after boosting the size of the offering.
The yen slid 0.7 percent to 100.30 per dollar and 0.3 percent versus the euro, while the U.S. currency was little changed at $1.3242 per euro. Norway’s krone jumped 1.3 percent to 7.8616 per euro after inflation accelerated faster than analysts estimated.
Treasuries
Treasury three-year note yields were up three basis points at 0.88 percent, double the 0.44 percent average over the past year, as the U.S. prepared to auction $31 billion of the debt. Ten-year gilt yields climbed as much as seven basis points to 3.03 percent, the highest since July 2011. German government bonds underperformed all their euro-area peers.
Spain’s bonds rallied, pushing 10-year yields below Italy’s for the first time in 18 months. The Italian bonds failed to match the gains in Spanish securities on concern a vote on whether to expel Silvio Berlusconi from Italy’s Senate will destabilize the coalition government.
The yield spread on global investment-grade notes widened for a third day to 123 basis points, the most since Aug. 16, Bloomberg index data show.
Verizon (VZ) is marketing what may be the biggest bond sale on record to finance the purchase of a stake in its mobile phone unit from Vodafone Group Plc. The offering in as many as eight parts may exceed Apple’s $17 billion issue in April.
Verizon Offering
Verizon may sell three-, five-, seven, 10-, 20-, and 30-year debt as soon as Sept. 11, according to a person with knowledge of the offering. The New-York based company may also sell securities in euros, pounds, and possibly yen, Societe Generale analysts wrote in a report dated Sept. 8.
The cost of insuring against losses on corporate bonds fell to the lowest in almost a month. The Markit iTraxx Europe Index of credit-default swaps on 125 investment-grade companies decreased 2.5 basis points to 98 basis points, the least since Aug. 14.
WTI dropped for a second day, falling 2.4 percent to $106.95 a barrel and gold declined 1.6 percent to $1,364.63 an ounce. The S&P GSCI (SPGSCI) gauge of 24 commodities slipped 1.8 percent, the second consecutive decline as silver retreated 1.9 percent.
Russia’s Interfax news agency cited Syrian Foreign Minister Walid al-Muallem as saying his government accepted the proposal. Muallem was in Moscow yesterday when Russia first announced its initiative, and said at the time he “welcomed” it.
To contact the reporters on this story: Kyoungwha Kim in Beijing at kkim19@bloomberg.net; Stephen Kirkland in London at skirkland@bloomberg.net
To contact the editor responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net
