Resources Lead Stock Gains as Oil, Metals Advance

EghtesadOnline: European stocks headed for the first gain in three days, led by raw-material producers after commodity prices surged on optimism the global economy is gathering momentum. Oil extended last week’s rally.

News ID: ۷۴۳۰۸۲

31 July 2017

Anglo American Plc, Rio Tinto Plc and BHP Billiton Plc underpinned the advance in the Stoxx Euro 600 Index as miners also propelled the MSCI All Country World Index toward a ninth month of gains. HSBC Holdings Plc spurred lenders after reporting earnings that beat estimates. West Texas crude briefly traded above $50 a barrel for the first time since May after OPEC said the group and its partners will meet next week to discuss production cuts. Copper led industrial metals higher after manufacturing data from China showed another expansion, Bloomberg reported.

Stocks have rallied to unprecedented levels globally this year as evidence emerged of a resilient worldwide economy. Investors are assessing economic numbers from the world’s top three economies, with China’s official factory gauge showing continued expansion in June, albeit slipping amid government efforts to curb financial risks. Japan’s industrial output rebounded in June, while data Friday showed the U.S. economy accelerating in the second quarter.

Corporate earnings remain of interest, with Apple Inc., Tesla Inc., Berkshire Hathaway Inc. and Toyota Motor Corp. set to unveil results this week. HSBC’s second-quarter profit beat analysts’ estimates as outgoing Chief Executive Officer Stuart Gulliver boosted revenue while also trimming costs, and the lender said it will spend up to $2 billion buying back stock.

In a packed week, here are some of the key events:

There’s a stack of data on the U.S. economy due this week; highlights include jobs data that probably shows employers added about 180,000 workers in July. That’s Friday. Also watch out for manufacturing and automaker data on Tuesday.

Brazil’s Congress votes on whether to put President Michel Temer on trial on Wednesday.

The Bank of England announces a monetary-policy decision on Thursday, with investors expecting the key rate to remain at a record low 0.25 percent.

Australia (Tuesday), India (Wednesday), Czech Republic and Ukraine (Thursday), and Romania (Friday) also announce rate decisions.

The flood of earnings continues, with tech giants Apple Inc. and Sony Corp. among the stand out names alongside the likes of Berkshire Hathaway Inc., Tesla Inc., Pfizer Inc. and Heineken NV.

Here are some of the key moves in markets:

Asia

The yen was little changed at 110.64 per dollar, set for the biggest monthly gain since January.

Japan’s Topix index closed 0.2 percent lower after swinging between gains and losses. Australia’s S&P/ASX 200 Index rose 0.3 percent and South Korea’s Kospi index added 0.1 percent. Hong Kong’s Hang Seng Index added 1.1 percent. HSBC wsas among the biggest contributors to the advance

Stocks

The Stoxx Europe 600 Index increased 0.4 percent as of 8:45 a.m. in London. Basic resources stocks gained 1.3 percent.

Futures on the S&P 500 Index rose 0.1 percent.

Germany’s DAX Index advanced 0.1 percent.

France’s CAC 40 Index climbed 0.2 percent.

The U.K.’s FTSE 100 Index jumped 0.5 percent.

Currencies

The Bloomberg Dollar Spot Index advanced 0.1 percent.

The euro dipped 0.2 percent to $1.1727.

The British pound decreased 0.1 percent to $1.3117.

Bonds

The yield on 10-year Treasuries fell less than one basis point to 2.29 percent.

Germany’s 10-year yield declined less than one basis point to 0.54 percent.

Britain’s 10-year yield decreased less than one basis point to 1.213 percent.

Commodities

West Texas Intermediate crude advanced 0.4 percent, hitting the highest in eight weeks.

Copper climbed 1.2 percent to $2.91 a pound, the highest in more than two years.

Gold declined 0.2 percent to $1,267.07 an ounce.