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Sydney - European stocks headed for the first gain in three days, led by raw-material producers after commodity prices surged on optimism the global economy is gathering momentum. Oil extended last week’s rally.
Anglo American, Rio Tinto and BHP Billiton underpinned the advance in the Stoxx Euro 600 Index as miners also propelled the MSCI All Country World Index toward a ninth month of gains.
HSBC spurred lenders after reporting earnings that beat estimates. West Texas crude briefly traded above $50 a barrel for the first time since May after OPEC said the group and its partners will meet next week to discuss production cuts.
Copper led industrial metals higher after manufacturing data from China showed another expansion.
Stocks have rallied to unprecedented levels globally this year as evidence emerged of a resilient worldwide economy. Investors are assessing economic numbers from the world’s top three economies, with China’s official factory gauge showing continued expansion in June, albeit slipping amid government efforts to curb financial risks.
Japan’s industrial output rebounded in June, while data on Friday showed the US economy accelerating in the second quarter.
Corporate earnings remain of interest, with Apple, Tesla, Berkshire Hathaway and Toyota set to unveil results this week. HSBC’s second-quarter profit beat analysts’ estimates as outgoing CEO Stuart Gulliver boosted revenue while also trimming costs, and the lender said it will spend up to $2bn buying back stock.
In a packed week, here are some of the key events:
• There’s a stack of data on the US economy due this week; highlights include jobs data that probably shows employers added about 180 000 workers in July. That’s Friday. Also watch out for manufacturing and automaker data on Tuesday.
• Brazil’s Congress votes on whether to put President Michel Temer on trial on Wednesday.
• The Bank of England announces a monetary-policy decision on Thursday, with investors expecting the key rate to remain at a record low 0.25%.
• Australia (Tuesday), India (Wednesday), Czech Republic and Ukraine (Thursday), and Romania (Friday) also announce rate decisions.
• The flood of earnings continues, with tech giants Apple and Sony among the stand out names alongside the likes of Berkshire Hathaway, Tesla, Pfizer and Heineken.
Here are some of the key moves in markets:
Asia
• The yen was little changed at ¥110.64/$ per dollar, set for the biggest monthly gain since January.
• Japan’s Topix index closed 0.2% lower after swinging between gains and losses.
• Australia’s S&P/ASX 200 Index rose 0.3% and South Korea’s Kospi index added 0.1%.
• Hong Kong’s Hang Seng Index added 1.1%. HSBC wsas among the biggest contributors to the advance
Stocks
• The Stoxx Europe 600 Index increased 0.4% as of 09:45.
• Basic resources stocks gained 1.3%.
• Futures on the S&P 500 Index rose 0.1%.
• Germany’s DAX Index advanced 0.1%.
• France’s CAC 40 Index climbed 0.2%.
• The UK’s FTSE 100 Index jumped 0.5%.
Currencies
• The Bloomberg Dollar Spot Index advanced 0.1%.
• The euro dipped 0.2% to $1.1727.
• The British pound decreased 0.1% to $1.3117.
Bonds
• The yield on 10-year Treasuries fell less than one basis point to 2.29%.
• Germany’s 10-year yield declined less than one basis point to 0.54%.
• Britain’s 10-year yield decreased less than one basis point to 1.213%.
Commodities
• West Texas Intermediate crude advanced 0.4%, hitting the highest in eight weeks.
• Copper climbed 1.2% to $2.91 a pound, the highest in more than two years.
• Gold declined 0.2% to $1 267.07 an ounce.
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