Stocks gained, erasing the MSCI All- Country World Index’s 2011 loss, while the euro rose and Treasuries tumbled amid speculation Europe will take action to prevent a Greek default. Commodities surged the most this month.
The MSCI equity gauge added 1.1 percent to 333.03 at 4 p.m. in New York, and the Standard & Poor’s 500 Index rallied 1.3 percent. Yields on 10-year Treasuries rose above 3 percent for the first time in almost a week after a government auction. The euro strengthened 0.6 percent to $1.4366. The S&P GSCI Index of 24 commodities surged 2.2 percent as crude oil futures jumped the most in almost six weeks.
Germany’s biggest banks and insurers will meet with the Finance Ministry in Berlin tomorrow as they seek to reach an agreement on their contribution to a Greek aid package, two people with knowledge of the matter said. The MSCI stock index fell 4.3 percent through yesterday after the extra yield investors demand to own Greek 10-year debt instead of similar German bonds exceeded 1,000 basis points on April 15.
“With the German banks on board, you find the solution which alleviates some of the European debt problems,” said Tom Wirth, senior investment officer for Chemung Canal Trust Co., which manages $1.6 billion in Elmira, New York. “If you can get beyond that sovereign crisis, then confidence comes back and we can see a rally in risk assets.”
Greek Prime Minister George Papandreou’s 78 billion euro ($111 billion) plan to cut spending and sell assets is set for a vote in parliament tomorrow. German and French lenders are the biggest European holders of Greek debt and their participation in the plan is key to the European Union goal of getting banks to roll over at least 30 billion euros of bonds.
Energy, consumer discretionary and raw-materials companies had the biggest gains among 10 industries in the S&P 500, with energy rallying the most with a 2.7 percent advance. Since the index bottomed on March 16, defensive sectors such as health- care, telecommunications and utilities have risen the most as investors sought havens on speculation growth is slowing.
Adidas AG, the world’s second-largest sporting-goods maker, rose 3.9 percent. Cable & Wireless Worldwide Plc tumbled 14 percent after the company said annual profit will miss estimates and Chief Executive Officer Jim Marsh resigned.
http://www.bloomberg.com/news/2011-06-28/asian-stocks-advance-as-commodities-rebound-from-five-month-low-won-gains.html
The MSCI equity gauge added 1.1 percent to 333.03 at 4 p.m. in New York, and the Standard & Poor’s 500 Index rallied 1.3 percent. Yields on 10-year Treasuries rose above 3 percent for the first time in almost a week after a government auction. The euro strengthened 0.6 percent to $1.4366. The S&P GSCI Index of 24 commodities surged 2.2 percent as crude oil futures jumped the most in almost six weeks.
Germany’s biggest banks and insurers will meet with the Finance Ministry in Berlin tomorrow as they seek to reach an agreement on their contribution to a Greek aid package, two people with knowledge of the matter said. The MSCI stock index fell 4.3 percent through yesterday after the extra yield investors demand to own Greek 10-year debt instead of similar German bonds exceeded 1,000 basis points on April 15.
“With the German banks on board, you find the solution which alleviates some of the European debt problems,” said Tom Wirth, senior investment officer for Chemung Canal Trust Co., which manages $1.6 billion in Elmira, New York. “If you can get beyond that sovereign crisis, then confidence comes back and we can see a rally in risk assets.”
Greek Prime Minister George Papandreou’s 78 billion euro ($111 billion) plan to cut spending and sell assets is set for a vote in parliament tomorrow. German and French lenders are the biggest European holders of Greek debt and their participation in the plan is key to the European Union goal of getting banks to roll over at least 30 billion euros of bonds.
Nike, Energy Stocks
U.S. shares also advanced after Nike Inc. (NKE) beat earnings estimates. The world’s largest sporting-goods company climbed 10 percent, the most since October 2008, as sales increased in North America.Energy, consumer discretionary and raw-materials companies had the biggest gains among 10 industries in the S&P 500, with energy rallying the most with a 2.7 percent advance. Since the index bottomed on March 16, defensive sectors such as health- care, telecommunications and utilities have risen the most as investors sought havens on speculation growth is slowing.
Adidas AG, the world’s second-largest sporting-goods maker, rose 3.9 percent. Cable & Wireless Worldwide Plc tumbled 14 percent after the company said annual profit will miss estimates and Chief Executive Officer Jim Marsh resigned.
http://www.bloomberg.com/news/2011-06-28/asian-stocks-advance-as-commodities-rebound-from-five-month-low-won-gains.html
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