(BN) S&P 500 Futures Rise as Italian Bonds Gain; European Stocks Fall

(BN) S&P 500 Futures Rise as Italian Bonds Gain; European Stocks Fall

Ion-Marc Valahu répond à Bloomberg – 11.12.2014

“The sector has been taken to the woodshed on slowing growth in China, deflation in Europe and an overall lack of consumption around the world,” Ion-Marc Valahu, a co-founder and fund manager at Clairinvest in Geneva, wrote in an e-mail.
“Like the oil sector, the market is unable to find a bottom so far.”

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S&P 500 Futures Rise as Italian Bonds Gain; European Stocks Fall
2014-12-11 13:10:23.639 GMT

By Nick Gentle and Stephen Kirkland
Dec. 11 (Bloomberg) — Standard & Poor’s 500 Index futures
signaled the gauge will rise for the first time this week, and
Italian bonds gained after a second round of targeted loans
boosted the case for quantitative easing. Mining companies led
European stocks lower.
S&P 500 futures added 0.3 percent at 8:08 a.m. in New York,
after the gauge slid 1.6 percent. The Stoxx Europe 600 Index
slid 0.6 percent. Italy’s 10-year yield fell three basis points
to 2.04 percent. Norway’s krone tumbled 0.8 percent per euro
after the central bank unexpectedly cut its overnight deposit
rate. The ruble touched a record low after Russia raised its key
rate in line with estimates.
About $1 trillion was erased from the value of global
equities in the past three days as oil prices tumbled, helping
boost demand at the sale of 10-year Treasuries to the highest in
21 months. The ECB’s second round of long-term loans came in at
the low end of analysts’ estimates. Reports today will probably
show U.S. retail sales picked up in November while jobless
claims were little changed last week, according to Bloomberg
surveys.
“Although investors are having all kinds of uncertainty
thrown at them, the case for investing has not changed,” said
Francois Savary, chief investment officer at Reyl & Cie. in
Geneva. “The U.S. is giving us strong signs of growth and
Europe is back on the path of recovery. There is more pessimism
coming into the end of this year but the buyers are still
there.”

U.S. Rebound

Futures on the S&P 500 expiring this month gained,
indicating the index will rebound after its worst slump in
almost two months sent to it its lowest level since Nov. 5.
Commodity producers declined in Europe for a sixth day, the
longest losing streak since September.
“The sector has been taken to the woodshed on slowing
growth in China, deflation in Europe and an overall lack of
consumption around the world,” Ion-Marc Valahu, a co-founder
and fund manager at Clairinvest in Geneva, wrote in an e-mail.
“Like the oil sector, the market is unable to find a bottom so
far.”
Rio Tinto Group and BHP Billiton Ltd., the world’s biggest
miners, lost more than 2 percent. Anglo American Plc fell 3.1
percent to a five-year low, while Glencore Plc slid 3.7 percent.
Iron ore may drop to less than $60 a metric ton next year
as the largest mining companies press on with raising supply,
deepening a glut just as demand growth in China falters,
according to Roubini Global Economics LLC.

Fiat Chrysler

Fiat Chrysler Automobiles NV slumped 7.2 percent after the
automaker sold shares. Inditex SA gained 4 percent after the
world’s largest clothing retailer said sales grew 14 percent
between Nov. 1 and Dec. 8 in local currencies, compared with an
11 percent gain in the first nine months of the fiscal year.
Telecom Italia SpA advanced 2.8 percent. Telefonica SA, Oi
SA and Claro SA plan to make an offer for Tim Participacoes SA,
according to people familiar with the matter. The Italian
company owns 67 percent of Rio de Janeiro-based Tim.
The MSCI Emerging Markets Index fell for a fifth day,
dropping 0.7 percent.
Dubai stocks led declines in the Gulf region, with the DFM
General Index tumbling 7.4 percent to the lowest level since
January. Abu Dhabi’s ADX General Index slid 4.7 percent and
Qatar’s benchmark gauge lost 4.3 percent.
The Shanghai Composite Index slid 0.5 percent, after
gaining as much as 0.9 percent and falling as much as 1.6
percent. The index’s 10-day volatility surged to the highest
level since 2009. The Hang Seng China Enterprises Index lost 1
percent.

Mobius Bullish

Money manager Mark Mobius said the bull market in Chinese
stocks is just getting started and he’s using the biggest price
swings in five years to boost holdings.
“We are buying more in China because we think this is the
beginning of a longer-term bull run,” Mobius, who oversees
about $40 billion as the executive chairman of Templeton
Emerging Markets Group, said in a phone interview yesterday from
Thailand.
The ruble fell as much as 1.1 percent to 55.455 per dollar
before trading 0.8 percent weaker, after Bank of Russia raised
its key rate to 10.5 percent, in line with the median estimate
in a Bloomberg survey. The Micex Index of stocks slipped 1.3
percent while the 10-year yield fell 19 basis points to 12.52
percent, extending yesterday’s 26 basis point drop.
Norway’s krone weakened through 9 per euro for the first
time since 2009 after the Norges Bank cut its overnight deposit
rate by 0.25 percentage point to 1.25 percent. Only one of the
17 economists surveyed by Bloomberg predicted the move, while
the rest saw unchanged rates.

Yen Weakens

The yen weakened 0.7 percent versus the dollar on
speculation Prime Minister Shinzo Abe’s Liberal Democratic Party
will win an election this weekend and extend measures that have
weighed on the currency. It declined after rallying more than 3
percent in the past three days.
The yield on 10-year Treasury notes fell one basis point to
2.15 percent, before today’s auction of 30-year securities.
The bid-to-cover ratio, which gauges demand by comparing
total bids with the amount of securities offered, was 2.97 at
yesterday’s offering of 10-year debt, the highest since March
2013, versus an average of 2.69 at the past 10 sales.
Spain’s 10-year yield fell two basis points to 1.85 percent
and Portugal’s rate also slid two basis points, to 2.94 percent.

ECB Loans

The ECB said it allotted 130 billion euros ($161 billion)
to euro-area banks at a fixed interest rate of 0.15 percent in
its targeted longer-term refinancing operation. Estimates in a
Bloomberg News survey ranged from 90 billion euros to 250
billion euros, with a median of 148 billion euros.
Germany’s 10-year yield fell to a record-low 0.664 percent
and the 30-year yield dropped below 1.5 percent for the first
time. The rate on 10-year U.K. gilts declined five basis points
to 1.86 percent. Germany’s
Credit-default swaps insuring $10 million of Greek debt for
five years were quoted at $2.9 million upfront and $500,000
annually, according to CMA. That’s signals a 52 percent
probability of default within that time.
West Texas Intermediate crude was little changed at $60.92
a barrel and Brent added 0.3 percent to $64.46. Gold and silver
declined as the dollar strengthened for the first time this week
and investors speculated that low oil prices will restrain
inflation. Bullion futures dropped 0.7 percent to $1,220.50 an
ounce and silver declined 1 percent.
Copper advanced, while lead, aluminum and nickel fell.

For Related News and Information:
Developed Market View: DMMV
Feature Stories on Stocks: TNI STK GREET
World Trends and Reversals: WT
Equity Screening: EQS
Top Stocks News: TOP STK

–With assistance from Yoshiaki Nohara in Tokyo, Sofia Horta e
Costa, Paul Dobson and Cecile Vannucci in London and Jonathan
Morgan in Frankfurt.

To contact the reporters on this story:
Nick Gentle in Hong Kong at +852-2977-6545 or
ngentle2@bloomberg.net;
Stephen Kirkland in London at +44-20-7073-3172 or
skirkland@bloomberg.net
To contact the editors responsible for this story:
Stephen Kirkland at +44-20-7073-3172 or
skirkland@bloomberg.net;
Stuart Wallace at +44-20-7673-2388 or
swallace6@bloomberg.net
Stuart Wallace