European shares climb with metals before jobs data

Sydney - European shares advanced, with mining companies extending gains as industrial metals continued a rally fueled by positive economic data surprises this week. The dollar and Treasuries were steady as investors await a US jobs report for clues on the Federal Reserve’s policy-tightening path.

The Stocks Europe 600 Index gained a third day, led by media companies after Vivendi SA sales beat estimates. The LME Index of six industrial metals soared to the highest in almost three years, with copper leading the charge.

Oil gave up most of Thursday’s increase, while gasoline fell for the first time in nine days, though remaining at an elevated level after Tropical Storm Harvey knocked out a quarter of refining capacity in the world’s biggest market. Japan’s benchmark bond yield fell below zero percent for the first time since November.

US consumer spending increased by less than estimated in July, though rising incomes and an upward revision to June purchases put the economy on a stable footing for the second half.

READ: US consumer spending, incomes signal stable second-half start

The focus now turns to jobs data on Friday for more clarity on the next move in interest rates from the Fed. The latest economic statistics reinforced that price pressures remain benign, while GDP and jobs growth are robust.

Among other key events this week:

• PMIs for Germany, France, the UK And the eurozone will be keenly watched, with one eye on next week’s European Central Bank rates decision.

• US data on non-farm payrolls is due on Friday, along with unemployment and earnings numbers and the Markit US PMI.

• US employment probably increased by 180 000 in August, in line with this year’s monthly average, while the jobless rate held at 4.3%, economists forecast.

• Singapore, Malaysia, Indonesia and the Philippines are closed for holidays.

• US markets are closed on Monday.

And here are the main moves in markets:

Stocks

• The Stoxx Europe 600 Index climbed 0.4% as of 09:35, the highest in a week. 

• The UK’s FTSE 100 Index gained 0.2% to the highest in almost three weeks. 

• Germany’s DAX Index advanced 0.3%.

• Futures on the S&P 500 Index increased 0.1%.

Currencies

• The Bloomberg Dollar Spot Index increased 0.1%.

• The euro decreased 0.2% to $1.1881, the weakest in more than a week.

• The British pound fell 0.1% to $1.2912, the weakest in a week on the largest drop in more than a week.

• The Japanese yen fell 0.2% to 110.19 per dollar.

Bonds

• The yield on 10-year Treasuries climbed one basis point to 2.13%.

• Germany’s 10-year yield increased less than one basis point to 0.36%.

• Britain’s 10-year yield gained less than one basis point to 1.034%.

• Japan’s 10-year yield dropped to -0.003%.

Commodities

• West Texas Intermediate crude fell 1% to $46.78 a barrel.

• Copper gained 0.5% to $6 821.00 per metric ton, the highest in about three years.

• Gold fell 0.2% to $1 318.62 an ounce, the biggest fall in more than a week.

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