Stocks rose around the world, led by Europe advancing for a fourth day, while Treasuries and precious metals declined as Senate leaders made progress on a U.S. debt deal. Australia’s dollar jumped after central bank minutes signaled an interest-rate cut isn’t imminent.
The Stoxx Europe 600 Index gained 0.7 percent at 6:15 a.m. in New York in the longest winning streak in two months. Standard & Poor’s 500 Index (SPX) futures added less than 0.1 percent. Yields on 10-year Treasury notes and German bunds touched three-week highs. The Aussie climbed as much as 0.6 percent to the strongest level against the dollar since June. Corporate bond risk dropped to the lowest in almost a month. Silver declined for a sixth day, the longest run of losses in six months.
Democrat and Republican Senate leaders made reference to progress in talks on a deal to suspend the debt ceiling through Feb. 7 and fund the government through Jan. 15. The U.S. is scheduled to sell $35 billion in three-month bills and $30 billion in six-month bills today. Citigroup Inc., Coca-Cola Co. and Intel Corp. are among companies in the S&P 500 reporting earnings.
“It looks like the door is now open for compromise,” Nader Naeimi, Sydney-based head of dynamic asset allocation at AMP Capital Investors Ltd., which manages about $130 billion, said on Bloomberg TV’s First Up with Susan Li. “The deadline is nearing and we’ll get through that. The volatility caused by this debt-ceiling debate will be with us until next year.”
The Stoxx 600 climbed to a three-week high as 18 of 19 industry groups advanced. Rio Tinto Group rose 3.3 percent to lead mining companies higher after reporting record third-quarter iron-ore and power-station coal output.
Burberry Group Plc (BRBY) lost 4.9 percent after saying Chief Executive Officer Angela Ahrendts will depart for Apple Inc. Schindler Holding AG tumbled 6.4 percent after the Swiss elevator maker cut its profit forecast.
The S&P 500 rose yesterday for a fourth day. Teradata Corp. (TDC) slumped 13 percent in early New York trading after the computer-data storage company reported third-quarter profit that missed analyst projections.
The MSCI Emerging Markets Index climbed to a four-month high, adding 0.8 percent. Benchmark gauges in Russia, Poland, South Korea, Taiwan and the Czech Republic jumped at least 1 percent. The Malaysian ringgit and South Korean won led currencies higher.
The Shanghai Composite Index fell for the first time in three days, while the Hang Seng China Enterprises Index of mainland companies listed in Hong Kong rose 0.9 percent as trading resumed after yesterday’s holiday. The yuan climbed to a 20-year high after the nation’s foreign-exchange reserves advanced to a record $3.66 trillion as of Sept. 30 in a sign of capital inflows.
Australia’s dollar gained as the central bank said in minutes from its Oct. 1 meeting, when it held borrowing costs at a record-low 2.5 percent, that it should “neither close off the possibility of reducing rates further nor signal an imminent intention to reduce them.”
The Aussie climbed as high as 95.48 U.S. cents, the strongest level since June 19. The euro slipped 0.4 percent to $1.3506.
Yields on 10-year Treasury notes rose three basis points, or 0.03 percentage point, to 2.72 percent after earlier climbing as high as 2.74 percent. The U.S. cash bond market was closed yesterday for a holiday. The yield on 10-year bunds jumped three basis points to 1.89 percent.
The rate on $120 billion in bills due Oct. 17 was at 0.21 percent after touching 0.52 percent on Oct. 10, according to historic intra-day data compiled by Bloomberg. On a closing basis the rate has average 0.09 percent since the securities were issued.
The cost of insuring against losses on corporate bonds fell for a fourth day. The Markit iTraxx Europe Index of credit-default swaps on 125 investment-grade companies decreased 0.9 basis point to 90.8 basis points, the lowest since Sept. 19.
Silver slid 2.4 percent. Gold fell 1.2 percent to $1,257.13 an ounce in London trading. West Texas Intermediate crude dropped for a third day, losing 0.5 percent to $101.88 a barrel. Robusta coffee fell as much as 3.5 percent, the most since Sept. 27, while U.S. natural gas traded near its highest in three months. European emission permits jumped the most since Sept. 6, climbing as much as 6.6 percent on ICE Futures Europe in London.
----With assistance from Emma O’Brien in Wellington, Richard Rubin in Washington, Susan Li in Hong Kong and Jonathan Burgos in Singapore, Paul Dobson, Lars Paulsson, Andrew Rummer and Shelley Smith in London. Editors: Stephen Kirkland, Stuart Wallace