Europe Stocks, Commodities Rise on China Data; Yen Climbs
By Feb 8, 2013 -
European stocks rose and commodities gained for the first time in three days as China’s trade data beat estimates. The yen rallied after Japanese Finance Minister Taro Aso said the currency weakened faster than he anticipated.
The Stoxx Europe 600 Index advanced 0.5 percent at 6:15 a.m. in New York. Standard & Poor’s 500 Index futures swung between gains and losses. Japan’s Nikkei 225 Stock Average sank 1.8 percent as Sony Corp. slumped 10 percent. The yen strengthened 1.2 percent to 92.53 per dollar, trimming its decline in the past three months to 14 percent. Heating oil increased 0.8 percent and nickel jumped 0.7 percent.
China’s trade surplus was $29.15 billion in January, compared with a median projection for a $24.7 billion excess. European Union leaders prepared the first-ever cuts in the bloc’s budget as ECB President Mario Draghi said recent currency advances may slow price gains and the pace of expansion. Aso told lawmakers the yen’s sudden decline to 90 per dollar wasn’t “something we anticipated.”
“The worst is definitely behind us but that doesn’t mean that it’s a clear passage going forward,” Mark Konyn, chief executive officer of Cathay Conning Asset Management Ltd., a joint venture between Conning & Co. and Cathay Financial Holding Co., said on Bloomberg Television’s “Asia Edge” with Rishaad Salamat. The effects of Europe on Asia “are somewhat softer than they have been over the past 12 months, but in Europe, there will still be a few surprises.”
The Stoxx 600 trimmed this week’s decline to 1 percent, the biggest drop since November. Bwin.Party Digital Entertainment Plc and 888 Holdings Plc jumped at least 14 percent as New Jersey Governor Chris Christie said he would be willing to allow a 10-year trial period of online betting. TDC A/S fell 2.3 percent, the biggest retreat in 10 weeks, as the Danish phone company’s private-equity owners offered a 15 percent stake for sale.
The S&P 500 has slipped 0.3 percent this week, heading for the first decline of the year. LinkedIn Corp., the biggest online professional-networking service, climbed 9 percent in pre-market trading after increased membership helped fourth- quarter profit and sales beat analysts’ estimates.
Sony tumbled the most since November 2008 after Japan’s largest consumer-electronics maker reported an eighth straight quarterly loss. Nissan Motor Co. fell 2.1 percent in German trading as the nation’s second-biggest carmaker posted third- quarter profit that fell short of analysts’ estimates.
The yen gained as much as 1.6 percent against the dollar, the biggest advance since March 17, 2011. The currency strengthened 1.1 percent versus the euro. The euro gained less than 0.1 percent to $1.3405, paring its biggest weekly drop since July.
Japan’s currency is poised to strengthen more than 10 percent versus the dollar within six months, according to Tom DeMark, the creator of indicators to show turning points in securities.
The New Zealand dollar climbed 0.5 percent to 83.72 U.S. cents. The Australia rose 0.5 percent to $1.0337.
Treasuries rose, pushing 10-year yields down two basis points to 1.94 percent.
The S&P GSCI gauge of 24 commodities climbed 0.4 percent. Zinc rose 0.7 percent and copper advanced 0.3 percent, the first gain in four days. China is the biggest buyer of industrial metals.
The MSCI Emerging Markets Index rose less than 0.1 percent. The Shanghai Composite Index jumped 0.6 percent. Trading volume was 19 percent less than the 30-day average before markets close next week for the Lunar New Year. OAO Gazprom dragged the Micex Index down 0.6 percent after saying lower profit last year may lead to a cut in dividends. South Korea’s Kospi Index rallied 1 percent, rebounding from a 10-week low. India’s Sensex slide 0.5 percent, dropping for a seventh day in the longest losing streak since November 2011.
PS. Risk on, risk off? Funds flows are doing well in Canada. So how will it all turn out, 2013? When do I go more into miners after lessening them since summer of 2012 and into more energy and non miners/non energy names. My current watchlist contain 6 names, all non resources. Have enough miners to still do okay if sentiments and momentum comes back (did ok in mid 90s before they crashed due to one company fraud and gold prices falling....been great since late 2000 in resources of all kinds as each had their day in the sun.), have lots of energy names that I think will do well and also loads of non res that will do well too.