Commodities, Austraila Dollar Decline on China Manufacturing; Stocks Gain

Traders work on the floor of the New York Stock Exchange (NYSE) before the closing bell in New York, New York, June 30, 2011. Photographer: Justin Lane/EPA

July 1 (Bloomberg) -- Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., talks about the global economy and financial markets. Oliver, who also discusses central banks' monetary policies, speaks with Rishaad Salamat and Susan Li on Bloomberg Television's "Asia Edge." (Source: Bloomberg)

July 1 (Bloomberg) -- Brian Wesbury, chief economist at First Trust Portfolios LP, talks about the Institute for Supply Management?€™s June manufacturing index released today and the outlook for the U.S. economy. The ISM factor index rose to 55.3 last month from 53.5 in May, the Tempe, Arizona-based group said. Wesbury speaks on Bloomberg Television's "InBusiness with Margaret Brennan." (Source: Bloomberg)

July 1 (Bloomberg) -- Martin Hegarty, co-head of global inflation-linked portfolios at BlackRock Inc., discusses the bond market and prospects for inflation. He talks with Betty Liu, Jon Erlichman and Dominic Chu on Bloomberg Television's "In the Loop." (Source: Bloomberg)

June 29 (Bloomberg) -- Jim Rogers, chairman of Rogers Holdings, talks about his investment strategy. Rogers also discusses Europe's sovereign debt crisis and Federal Reserve monetary policy. He speaks from Singapore with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)

June 28 (Bloomberg) -- Jason Schenker, president of Prestige Economics in Austin, Texas, talks about oil. The International Energy Agency announced June 23 that it will open emergency oil stockpiles as the loss of exports from Libya sends prices to levels that endanger global economic growth. Schenker also discusses the outlook for the U.S. economy, Federal Reserve monetary policy, and municipal bonds. He speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

Stocks climbed, with the Standard & Poor?€™s 500 Index extending its largest weekly gain in a year, as a U.S. manufacturing index unexpectedly rose and Greece moved closer to averting a default. Treasuries fell and corn tumbled for a third day.

The S&P 500 advanced 1.3 percent to 1,338.08 at 2:40 p.m. in New York, while the MSCI All-Country World Index gained 1.3 percent. Yields on 10-year Treasury notes rose for a fifth day. The S&P GSCI index of 24 commodities dropped 0.7 percent as corn tumbled to the lowest level since December and crude oil dropped for the first time in four days. The Swiss franc depreciated against all 16 major currencies monitored by Bloomberg.

A U.S. report from the Institute for Supply Management today showed manufacturing growth unexpectedly picked up in June. Greece may receive as much as 85 billion euros ($124 billion) in a second bailout aimed at preventing default, according to an Austrian Finance Ministry official. Factory output growth fell to the lowest level since February 2009, according to the China Federation of Logistics and Purchasing.

?€œWe had a positive surprise with U.S. manufacturing data,?€ said Mark Luschini, chief investment strategist at Philadelphia-based Janney Montgomery Scott LLC, which manages $54 billion. ?€œThat not only indicates that the recent soft patch is temporary, it also tells you that we?€™ll continue to see strength in global growth. In Europe, they are buying themselves more time away to solve their debt crisis. We should see a decent second half for the economy and the markets.?€

Four-Day Gain

The S&P 500 climbed 1 percent yesterday, completing its biggest four-day gain since September, after Greek Prime Minister George Papandreou won a second vote to implement his 78-billion euro austerity package, qualifying the country for the next tranche of financial aid from the European Union.

The U.S. benchmark index ended June with a 1.8 percent decline, spurring the first quarterly loss in a year, on concern about Europe?€™s debt crisis and weaker-than-expected economic data. The index was still up 5 percent for the first half of 2011 as government stimulus measures, takeovers and higher-than- estimated corporate earnings lifted investors?€™ confidence.

Stocks jumped today after the ISM said its factory index rose to 55.3 in June from 53.5 the prior month. Economists projected the gauge would drop to 52, according to the median forecast in a Bloomberg News survey.

The report is a sign industry is rebounding after shortages of parts and components from Japan slowed production, and may ease concerns after other figures today showed manufacturing growth is slowing from China to Europe. China?€™s factory index fell in June to the weakest level since February 2009, while in the 17-nation euro area, a gauge slipped to an 18-month low. German manufacturing expanded at the slowest pace in 17 months, while Italy, Ireland, Spain and Greece contracted.

Consumer Confidence

Confidence among U.S. consumers declined in June. The Thomson Reuters/University of Michigan said today its final index of sentiment fell to 71.5 from 74.3 in May.

Home Depot Inc. (HD), 3M Co. (MMM) and Intel Corp. (INTC) rallied at least 1.5 percent, pacing gains among companies most-dependent on economic growth. The Dow Jones Transportation Average, a proxy for economic growth, rose 2.2 percent. Eastman Kodak Co. (EK) tumbled 14 percent after a trade panel failed to reach consensus on the camera company?€™s claims that Apple Inc. and Research In Motion Ltd. infringe its image-preview technology.

More than 4.1 billion shares changed hands today ahead of the July 4 holiday in the U.S., 4 percent less than at the same time a week ago.

Treasuries Slump

Treasuries fell as the manufacturing report reduced concern the U.S. economic recovery is stalling. Benchmark 10-year notes headed for their steepest weekly loss in almost two years, as yields rose five basis points to 3.21 percent. Treasuries returned 2.4 percent in the second quarter after losing 0.1 percent in the first three months of the year, according to Bank of America Merrill Lynch indexes.

Corn fell for a third day, losing 3.7 percent, after the U.S. Department of Agriculture said yesterday U.S. farmers planted a bigger crop than analysts were expecting. Prices reached $5.755, the lowest for the most-active contract since Dec. 13. The grain is up 55 percent in the past year.

Crude oil fell 0.6 percent to $94.89 a barrel. Futures tumbled as much as 2.1 percent on the weak economic data from China and Europe, then pared losses after the U.S. manufacturing report. The U.S. and China are the world?€™s two largest oil- consuming countries, and manufacturing numbers are used as indicators for fuel demand growth. Oil prices have risen 22 percent in the past year and 4.1 percent this week.

Seeking Higher Yields

The Swiss franc, considered a haven, slid 1 percent versus the euro and the dollar, as investors sought higher-yielding currencies. The euro gained less than 0.1 percent versus the dollar, to $1.4506, and is heading for a 2.2 percent weekly advance. The yen depreciated versus 15 of 16 major peers, falling the most against the Swedish krona.

The yield on the Greek two-year note rose eleven basis points, following three days of declines. European Union finance chiefs will hold a conference call tomorrow to free up a fifth installment of aid to Greece from last year?€™s bailout. Greece needs that 12 billion-euro payment to meet a 6.6 billion-euro bond maturity in August.

European Stocks

The Markit iTraxx SovX Western Europe Index of credit- default swaps on 15 governments fell two basis points to 215. The gauge is down from a peak of 243 basis points June 24 and is heading for the biggest weekly decline in more than a year.

Three shares advanced for every two that fell in the Stoxx Europe 600 Index, which rose 0.8 percent. The Stoxx 600 has gained 4.1 percent this week, the biggest jump since July.

The MSCI Asia Pacific Index gained 0.4 percent, while the MSCI Emerging Markets Index rose 0.9 percent. The Nikkei-225 Stock Average advanced 0.5 percent after Japanese companies said in a Tankan survey they will boost capital spending 4.2 percent in fiscal 2011, exceeding analysts?€™ forecasts for a 2.4 percent gain. Russia?€™s Micex Index climbed 1.9 percent after President Dmitry Medvedev lifted curbs on domestic-share trading.

To contact the reporters on this story: Stephen Kirkland in London at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; Jeff Sutherland in New York at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

To contact the editor responsible for this story: Nick Baker at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Authors: Commodities - Yahoo! News Search Results

Read more: