European stocks climbed as Rio Tinto Plc jumped after posting its first annual profit in three years. The MSCI Asia Pacific Index extended gains toward the highest closing level since July 2015. The yen fluctuated after rising earlier on the Bank of Japan’s offered to buy bonds for the third time in a week. Oil tumbled for a third day after data showed U.S. crude stockpiles surged. Copper led metals higher as workers at the world’s largest copper mine vowed to start a strike. Economists expect the Reserve Bank of India will cut interest rates that are already at a six-year low, according to Bloomberg.
Moves in financial market have been punctuated by midday reversals across the globe, underscoring a lack of direction as investors look for more details from the the Trump administration on promised spending increases and tax cuts at the same time that data continue to paint a mixed picture on the pace of inflation in developed markets. Corporate earnings have provided some relief for investors, with companies including Tata Steel Ltd. and Rio Tinto showing strong results.
Here are the main market moves:
Stocks
- The Stoxx Europe 600 Index increased 0.5 percent as of 8:20 a.m. in London, led by raw-material producers. Rio Tinto jumped 2.6 percent as it announced it will pay a much higher dividend than expected and buy back $500 million of shares after higher iron ore prices boosted profits.
- The MSCI Asia Pacific Index added 0.3 percent. The Topix increased 0.5 percent, recovering after erasing earlier gains on the BOJ’s move. South Korea’s Kospi Index fell 0.5 percent as Samsung Electronics Co. declined 1.1 percent.
- The Hang Seng China Enterprises Index rose 1.1 percent to a five-month high, led by property developers and automakers amid optimism their earnings outlook will improve. The Shanghai Composite Index climbed 0.4 percent.
- Contracts on the S&P 500 rose 0.1 percent, after the gauge increased less than a point Tuesday in New York. The Dow Jones Industrial Average touched an all-time high before the rally faded as oil majors slumped.
Currencies
- The Bloomberg Dollar Spot Index rose 0.2 percent, adding to a two-day gain of 0.5 percent. The currency is still down 3 percent from a Jan. 3 peak.
- The yen rose 0.2 percent to 112.23 per dollar. The currency slid 0.6 percent the previous session. The euro slipped 0.3 percent to $1.0650.
Commodities
- Oil slid 0.9 percent to $51.71 a barrel in New York, heading for a third-straight drop amid speculation that rising supply from U.S. shale producers is offsetting cuts by OPEC..
- Copper three-month forwards jumped 1.9 percent in London. Workers at the world’s biggest copper mine vowed to start an indefinite strike Thursday as talks with BHP Billiton Ltd. failed to produce an agreement following weeks of collective bargaining in Chile.
Bonds
- Yields on 10-year Treasuries held below 2.40 percent, after falling below that level for the first time in two weeks on Tuesday.