Stocks, Copper Advance on Economy; Yen Weakens, Debt Risk Falls
By Stephen Kirkland
July 9 (Bloomberg) -- Stocks rose, with the MSCI World Index headed for its biggest weekly rally in a year, copper gained and the yen depreciated on waning concern the global recovery will falter. The cost of insuring bank debt fell to the lowest in eight weeks.
The Standard & Poor’s 500 Index climbed 0.2 percent and Stoxx Europe 600 Index advanced 0.6 percent at 10:08 a.m. in New York. The Shanghai Composite Index surged 2.3 percent, the biggest jump among major equity gauges worldwide. Copper increased for the fourth day this week, while the yen weakened against 12 of its 16 most-traded peers. The 10-year Treasury yield held above 3 percent for a second day.
French manufacturing expanded in May, spurred by improving global trade and a pickup in output at car plants, the Paris- based national statistics office Insee said today. European Central Bank President Jean-Claude Trichet said that while the fiscal crisis isn’t over, the economic signs are “encouraging.” Policy makers in South Korea, Malaysia, Taiwan and India raised rates in the past 15 days, signaling Europe’s debt crisis won’t derail economic growth.
“There are tentative signs that the pessimism has reached saturation point,” Graham Bishop and Ian Richards, analysts at Royal Bank of Scotland Group Plc in London, wrote in a note. “The macro risks may not have disappeared, but we believe they are amply discounted.”
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