Global stocks rise with commodities; Yen drops

BLOOMBERG

Stocks rose around the world, as the bearish sentiment that has set the tone on equities markets the past two weeks eased amid a rebound in base metals. The yen declined a second day and Brazil’s real advanced.
The MSCI All Country World Index climbed the most in three weeks, with U.S. equities climbing the most in a week. Credit Suisse Group AG boosted European banks and Japanese shares rose. Nickel led a rebound in a Bloomberg measure of raw-materials prices.
Brazilian markets rebounded as the move to oust President Dilma Rousseff appeared back on track.
The recovery in stocks follows a selloff last week that wiped out about $1.5 trillion as economic data pointed to lackluster growth in the world’s biggest economies and called into question the effectiveness of central-bank stimulus. The S&P 500 began a rebound on Friday as worse-than-estimated jobs data spurred speculation the Federal Reserve will adopt a slower pace in tightening monetary policy. The yen weakened as the nation’s finance minister signaled the government has the means to intervene if necessary.
“Some of the same factors driving commodities are driving global growth and equities in general,” said Greg Woodard, a senior analyst and strategist at Fairport, New York-based Manning & Napier Inc., which oversees about $46 billion.
“If they feel better about growth in China, in emerging markets and global growth, they feel more positive about equities and commodities. The commodity space is really a barometer as opposed to driving equities.”

Stocks
The S&P 500 rose 0.7 percent at 10:12 a.m. in New York, headed for a third day of gains. The index hasn’t posted a move of more than 1 percent in either direction for 18 straight sessions, the longest stretch of calm since 2014.
After rallying 15 percent from a February low, the index has struggled since to press higher amid lackluster corporate results, particularly from technology giants such as Apple Inc. and Microsoft Corp., as well as subdued economic indicators that damped investor appetite for risky assets.
The Stoxx Europe 600 Index advanced 0.5 percent, with most of its industry groups rising. Lenders led gains. Greece’s ASE Index rose 2.7 percent for the biggest rally among western-European markets. S&P 500 futures added 0.4 percent after the gauge closed little changed on Monday.
Credit Suisse rallied 4.1 percent after posting a smaller loss than analysts estimated. Pandora A/S jumped 10 percent after the maker of charm bracelets reported better-than-projected results and raised its full-year forecast.
The MSCI Emerging Markets Index gained 0.3 percent, after falling for seven days in the longest slump this year.
Brazil’s Ibovespa jumped 1.7 percent to rebound after the benchmark Ibovespa slumped 1.4 percent on Monday. The process to oust Rousseff appeared back on track after the head of the lower house reversed his own call to annul impeachment sessions in the lower house.
The Hang Seng China Enterprises Index advanced 0.4 percent, while the Shanghai Composite Index was little changed after data showed inflation matching economists’ estimates, while declines in producer prices moderated.

Currencies
The yen slid 0.7 percent to 109.05 per dollar, adding to Monday’s loss of 1.1 percent. It declined versus all of its 16 major counterparts. The real advanced 0.6 percent to 3.4938 per
dollar.
Bloomberg Dollar Spot Index was little changed, after rising for five days.
The Philippine peso strengthened 0.8 percent as Duterte, the tough-talking mayor of Davao City, sought to calm markets and win over Filipinos and investors watching closely how he will manage the economy.
Malaysia’s ringgit slumped to a seven-week low and Russia’s ruble weakened as trading resumed following a slide in oil on Monday. South Korea’s won fell to the lowest in almost eight weeks.

Commodities
Nickel rallied as much as 2 percent in London, after sliding more than 5 percent on Monday. The market will face a shortage this year as Chinese smelters are joined by other producers in paring output, according to Sumitomo Metal Mining Co.
West Texas Intermediate crude gained 0.4 percent to $43.63 a barrel. It slid 2.7 percent on Monday as Canadian oil-sands producers began restarting operations after wildfires forced shutdowns. Prices are still below $45 a barrel on speculation U.S. stockpiles have continued to rise.
Oil futures gained even as Nigeria’s oil minister said the nation’s four refineries are working “fully” again after months of pipeline disruptions at Africa’s second-largest oil producer. About 90,000 barrels a day of output was halted last week following an attack on an offshore platform that takes oil from several fields.

Bonds
Treasury 10-year note yields were little changed at 1.76 percent before a sale of $24 billion of three-year notes Tuesday, to be followed by $23 billion of 10-year securities Wednesday and $15 billion of 30-year bonds a day later.
The securities have returned 3.5 percent return since the end of December as traders pared bets that the Federal Reserve will raise interest rates this year.
There’s a 45 percent chance of a hike in 2016, down from 93 percent at the start of the year, Fed Funds futures show.
Greece’s 10-year bond yield slid to the lowest this year amid optimism that euro-area finance chiefs have taken a major step forward in their quest to unlock aid for the nation.
After their meeting in Brussels on Monday, they outlined plans to seek International Monetary Fund backing for an accord on Greek debt relief, and will reconvene in two weeks to finalize the negotiations.
The yield on Greece’s 10-year bond fell 64 basis points to 7.78 percent, close to its lowest since Dec. 3.