The dollar strengthened to a seven-year high against the yen while oil rebounded from the lowest levels since 2010. U.S. stocks ended little changed while Treasuries rose.
The dollar appreciated 0.4 percent to 116.28 yen at 4 p.m. in New York. The yield on 10-year Treasuries dropped two basis points to 2.32 percent.
The Standard & Poor’s 500 Index rose less than 0.1 percent and the Stoxx Europe 600 Index slipped 0.1 percent. The ruble headed for its 10th weekly decline. Brent crude rose for the first time in a week.
Retail sales increased in October as American consumers ate out and shopped for clothes, enjoying a windfall from cheaper gasoline.
The euro-area economy grew faster than analysts forecast in the third quarter as Germany and France rebounded and Greece showed some signs of revival.
China said it will waive capital-gains taxes for foreign investors and mainland individuals using the Shanghai-Hong Kong bourse link.
“As we move closer to the end of the year people are looking for a holiday rally and may be asking if it’s happened already,” Robert Pavlik, who helps oversee $4.5 billion as chief market strategist at Banyan Partners LLC in New York, said by phone.
“The small retail beat isn’t going to do it. We’re going to see a little pause. We can’t continue to climb up this ladder forever.”
U.S. retail sales in October increased 0.3 percent after a 0.3 percent drop in September. The median forecast in a Bloomberg survey of 86 economists projected a 0.2 percent advance.Eleven of 13 major categories showed gains, indicating broad-based growth.
Consumer Sentiment
The Thomson Reuters/University of Michigan preliminary November index of consumer sentiment increased to 89.4 from 86.9 a month earlier. The median projection in a Bloomberg survey of 71 economists called for a reading of 87.5.
The S&P 500 rallied 9.5 percent from a six-month low in October to a record on Nov. 11 as better-than-estimated corporate earnings and economic data boosted confidence the U.S. economy can withstand a global slowdown as the Federal Reserve ended its bond-buying program.
The world economy is in its worst shape in two years, according to a Bloomberg Global Poll of investors, with the euro area and emerging markets deteriorating and the danger of deflation rising.
A plurality of 38 percent of those surveyed this week described the global economy as worsening, more than double the number who said that in the last poll in July and the most since September 2012, when Europe was mired in a recession.
Much of the concern is again focused on the euro area: Almost two-thirds of those polled said its economy was weakening while 89 percent saw disinflation or deflation as a greater threat there than inflation over the next year.
ECB Stimulus
With inflation close to the lowest level in five years, the European Central Bank is preparing to add to unprecedented stimulus and urged governments to invest and deliver structural reforms to support growth.
Data today showed Germany and France, the euro area’s two largest economies, returned to growth in the third quarter, with expansions of 0.1 percent and 0.3 percent, respectively.
The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its most-traded peers, fell 0.2 percent, reversing an earlier gain.
The yen capped a fourth week of losses as debate about an increase in the sales tax became the latest factor to weaken the currency. Japan Tax Japan’s prime minister Shinzo Abe will hold a news conference next week to announce a delay in the sales-tax increase, Mainichi newspaper reported, without saying who provided the information.
Abe will also explain the reasons for his decision to dissolve parliament at the news conference, according to the report. The MSCI Emerging Markets Index lost 0.2 percent, sending the gauge toward a 0.4 percent gain for the week. Brazil’s Ibovespa slid 0.1 percent, extending yesterday’s 2.1 percent drop.
The ruble weakened 0.8 percent to 47.1476 per dollar, extending its decline for the five-day period to 1 percent. Russia’s currency has dropped for 10 weeks, the longest slump since 2005.
Credit-default swaps insuring Russian government debt rose 13 basis points to 295 basis points, the highest since November 2011, according to data compiled by Bloomberg. The contracts have increased for all but one of the past 11 days, the data show.
OPEC Output
Brent crude climbed 2.5 percent to $79.41 amid speculation that the drop in prices below $80 a barrel increases the likelihood that OPEC will cut production. West Texas Intermediate added 2.2 percent to $75.82.
OPEC producers have stepped up their diplomatic visits before the group’s meeting in two weeks, potentially seeking a consensus on how to react to oil prices that have plunged to a four-year low. Prices could slide further in the coming months as the market enters a period of weaker demand, the International Energy Agency said today.
Futures on the Hang Seng China Enterprises Index rose 1.4 percent after the official close of Hong Kong’s stock exchange and contracts on the Hang Seng Index climbed 0.9 percent, ahead of the start of the Hong Kong-Shanghai trading link next week.
Chinese individuals who buy Hong Kong equities through the link get a three-year exemption, while mainland companies using the connect will be charged tax, the Ministry of Finance said in a statement today, clarifying its rules three days before the program’s debut.
China is counting on demand from foreign money managers to boost equity valuations, turn Shanghai into a global financial center and increase global use of the yuan.
Tax policy was one of several market-structure shortcomings, including capital controls and rules against same-day trading, cited by investors when MSCI gathered views on mainland shares for its June index decision.
bloomberg.com
The dollar appreciated 0.4 percent to 116.28 yen at 4 p.m. in New York. The yield on 10-year Treasuries dropped two basis points to 2.32 percent.
The Standard & Poor’s 500 Index rose less than 0.1 percent and the Stoxx Europe 600 Index slipped 0.1 percent. The ruble headed for its 10th weekly decline. Brent crude rose for the first time in a week.
Retail sales increased in October as American consumers ate out and shopped for clothes, enjoying a windfall from cheaper gasoline.
The euro-area economy grew faster than analysts forecast in the third quarter as Germany and France rebounded and Greece showed some signs of revival.
China said it will waive capital-gains taxes for foreign investors and mainland individuals using the Shanghai-Hong Kong bourse link.
“As we move closer to the end of the year people are looking for a holiday rally and may be asking if it’s happened already,” Robert Pavlik, who helps oversee $4.5 billion as chief market strategist at Banyan Partners LLC in New York, said by phone.
“The small retail beat isn’t going to do it. We’re going to see a little pause. We can’t continue to climb up this ladder forever.”
U.S. retail sales in October increased 0.3 percent after a 0.3 percent drop in September. The median forecast in a Bloomberg survey of 86 economists projected a 0.2 percent advance.Eleven of 13 major categories showed gains, indicating broad-based growth.
Consumer Sentiment
The Thomson Reuters/University of Michigan preliminary November index of consumer sentiment increased to 89.4 from 86.9 a month earlier. The median projection in a Bloomberg survey of 71 economists called for a reading of 87.5.
The S&P 500 rallied 9.5 percent from a six-month low in October to a record on Nov. 11 as better-than-estimated corporate earnings and economic data boosted confidence the U.S. economy can withstand a global slowdown as the Federal Reserve ended its bond-buying program.
The world economy is in its worst shape in two years, according to a Bloomberg Global Poll of investors, with the euro area and emerging markets deteriorating and the danger of deflation rising.
A plurality of 38 percent of those surveyed this week described the global economy as worsening, more than double the number who said that in the last poll in July and the most since September 2012, when Europe was mired in a recession.
Much of the concern is again focused on the euro area: Almost two-thirds of those polled said its economy was weakening while 89 percent saw disinflation or deflation as a greater threat there than inflation over the next year.
ECB Stimulus
With inflation close to the lowest level in five years, the European Central Bank is preparing to add to unprecedented stimulus and urged governments to invest and deliver structural reforms to support growth.
Data today showed Germany and France, the euro area’s two largest economies, returned to growth in the third quarter, with expansions of 0.1 percent and 0.3 percent, respectively.
The Bloomberg Dollar Spot Index, which tracks the greenback against 10 of its most-traded peers, fell 0.2 percent, reversing an earlier gain.
The yen capped a fourth week of losses as debate about an increase in the sales tax became the latest factor to weaken the currency. Japan Tax Japan’s prime minister Shinzo Abe will hold a news conference next week to announce a delay in the sales-tax increase, Mainichi newspaper reported, without saying who provided the information.
Abe will also explain the reasons for his decision to dissolve parliament at the news conference, according to the report. The MSCI Emerging Markets Index lost 0.2 percent, sending the gauge toward a 0.4 percent gain for the week. Brazil’s Ibovespa slid 0.1 percent, extending yesterday’s 2.1 percent drop.
The ruble weakened 0.8 percent to 47.1476 per dollar, extending its decline for the five-day period to 1 percent. Russia’s currency has dropped for 10 weeks, the longest slump since 2005.
Credit-default swaps insuring Russian government debt rose 13 basis points to 295 basis points, the highest since November 2011, according to data compiled by Bloomberg. The contracts have increased for all but one of the past 11 days, the data show.
OPEC Output
Brent crude climbed 2.5 percent to $79.41 amid speculation that the drop in prices below $80 a barrel increases the likelihood that OPEC will cut production. West Texas Intermediate added 2.2 percent to $75.82.
OPEC producers have stepped up their diplomatic visits before the group’s meeting in two weeks, potentially seeking a consensus on how to react to oil prices that have plunged to a four-year low. Prices could slide further in the coming months as the market enters a period of weaker demand, the International Energy Agency said today.
Futures on the Hang Seng China Enterprises Index rose 1.4 percent after the official close of Hong Kong’s stock exchange and contracts on the Hang Seng Index climbed 0.9 percent, ahead of the start of the Hong Kong-Shanghai trading link next week.
Chinese individuals who buy Hong Kong equities through the link get a three-year exemption, while mainland companies using the connect will be charged tax, the Ministry of Finance said in a statement today, clarifying its rules three days before the program’s debut.
China is counting on demand from foreign money managers to boost equity valuations, turn Shanghai into a global financial center and increase global use of the yuan.
Tax policy was one of several market-structure shortcomings, including capital controls and rules against same-day trading, cited by investors when MSCI gathered views on mainland shares for its June index decision.
bloomberg.com
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