Copper ended two days of losses. Photographer: Chris Ratcliffe/Bloomberg
Nov. 2 (Bloomberg) -- Keith Wade, chief economist at Schroders Plc, talks about the U.S. economy and the possibility of a third round of quantitative easing by the Federal Reserve. He speaks with Maryam Nemazee on Bloomberg Television's "The Pulse." (Source: Bloomberg)
Nov. 2 (Bloomberg) -- Shane Oliver, Sydney-based head of investment strategy at AMP Capital Investors Ltd., talks about Europe's sovereign debt crisis and its implications for global stock markets. Oliver speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Nov. 2 (Bloomberg) -- Pu Yonghao, Hong Kong-based chief investment strategist at UBS Wealth Management, talks about Europe's sovereign debt crisis and its implications for global stock markets. Pu speaks with Susan Li and Rishaad Salamat on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Nov. 2 (Bloomberg) -- Mohammed Apabhai, head of Asia trading strategy at Citigroup Inc., talks about Europe's sovereign debt crisis and its implications for global financial markets. Apabhai also discusses MF Global Holdings Ltd.’s bankruptcy. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Visitors pass through the main entrance hall of the London Stock Exchange Group Plc, in London. Photographer: Simon Dawson/Bloomberg
U.S. stocks rebounded from a two-day slump and commodities rose, while the dollar and Treasuries fell, as a report showed American payrolls grew more than forecast and investors awaited the Federal Reserve’s statement on the economy and monetary policy. The euro strengthened.
The Standard & Poor’s 500 Index climbed 1.6 percent to 1,237.43 at 10:45 a.m. in New York. The Stoxx Europe 600 Index rose 0.6 percent. The Dollar Index slid 0.5 percent, snapping a three-day advance. Treasury 10-year yields advanced four basis points to 2.03 percent, the first increase in four days. The euro appreciated against 11 of its 16 major peers as European leaders prepared to ratchet up pressure on Greece to accept a bailout. Copper halted a two-day retreat and oil gained.
U.S. companies added 110,000 workers in October, according to ADP Employer Services, and economists surveyed by Bloomberg forecast the Fed is probably engineering a third round of asset purchases to bolster growth, even as a decision is unlikely to be announced today. European leaders plan to hold emergency talks with Greek Prime Minister George Papandreou in Cannes, France, on the eve of a Group of 20 summit. French President Nicolas Sarkozy said yesterday the “only way” to repair Greek finances is through the deal hammered out last week.
“You’re seeing a little greed overtake fear of what could come from Europe,” James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, which oversees about $360 billion, said in a telephone interview. “The U.S. is moving away from a recession. The data does not support the need for QE3,” he said referring to a third round of quantitative easing, or asset purchases.
Rebound After Slump
The S&P 500 fell 5.2 percent during the first two days of the week after Papandreou planned a referendum to allow voters to decide if Greece should accept the bailout, spurring concern the rescue would be rejected and the nation would default on its debt.
Sixty-nine percent of economists surveyed by Bloomberg say Fed Chairman Ben S. Bernanke will start a third round of quantitative easing, or QE3, with 36 percent predicting the move in the first quarter of next year, according to a poll of 42 economists from Oct. 26-31.
Financial companies and energy and commodity producers led gains among all 10 of the main industry groups in the S&P 500 today, with Citigroup Inc., DuPont Co. and Exxon Mobil Corp. pacing the advance. All but one of the 81 stocks in the S&P 500 Financials Index advanced. Bank of America Corp. and Goldman Sachs Group Inc. climbed more than 3 percent, rebounding from plunges of at least 5.5 percent yesterday.
European Stocks
The Stoxx 600 pared this week’s drop to 5.3 percent as basic-resource producers, auto companies and insurers led gains. Logica Plc sank 8.7 percent in London as the Anglo-Dutch computer services provider cut its sales-growth forecast.
Benchmark indexes in Italy, France and Germany rose at least 0.8 percent, rebounding from plunges of at least 5 percent yesterday.
The euro strengthened 0.6 percent to $1.3783. The shared currency recovered after earlier paring gains as the European Financial Stability Facility said it will delay a planned 3 billion-euro ($4.1 billion) bond sale because of market conditions. The dollar weakened against 12 of 16 major peers, losing 0.4 percent to 78.03 yen.
“The dollar is softening into the meeting on talk of” quantitative easing, said Jane Foley, a senior currency strategist at Rabobank International in London. “That may be premature. We’ve had a glimmer of hope or optimism on the Greek situation,” which supports the euro, she said.
Bund Yields
German bund yields were six basis points higher at 1.83 percent after dropping 26 basis points yesterday, the biggest decline since Bloomberg began collecting the data in 1992. Greek two-year yields rose as much as 855 basis points to a record 95.83 percent.
Germany sold 4 billion euros of five-year notes at a record-low yield of 1 percent, and Portugal raised 1.2 billion euros in a sale of three-month bills.
Papandreou stuck to plans to hold a referendum on Europe’s rescue package to confirm the nation’s membership of the euro amid signs his government may collapse. His grip on power weakened after a lawmaker from his socialist Pasok party defected, leaving him with 152 deputies in the 300-seat chamber, while another, Vasso Papandreou, called for the formation of a national unity government.
Copper climbed 2.3 percent as inventories of the metal in warehouses monitored by the London Metal Exchange dropped for a 10th consecutive day, the longest decline since July 6.
Oil rose 0.9 percent to $93.06 a barrel in New York, the first advance in four days. Futures pared gains as the U.S. Energy Department said stockpiles advanced 1.83 million barrels to 339.5 million last week, topping the median forecast for a 1 million barrel increase in a survey of analysts.
The MSCI Emerging Markets Index rose 0.9 percent, following its worst two-day decline in a month. The Hang Seng China Enterprises Index climbed 2.6 percent in Hong Kong. Russia’s Micex Index advanced 1.3 percent.
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