Hong Kong - Global stocks headed for the biggest weekly gain in a month as gains in oil prices bolstered investor confidence. Norway’s krone led gains among the currencies of crude-exporting nations.
The MSCI All Country World Index held near a one-year high on Friday, while US equity index futures were little changed after American benchmarks rallied to records on Thursday.
Shanghai shares climbed the most in a month, buoyed by speculation of takeovers in the property industry.
Crude headed for its biggest weekly advance since April, trading near $44 a barrel, amid speculation major producers will work together to stabilize prices. The krone and the Canadian dollar strengthened for the fifth day in a row.
Equities and bonds are both higher on the week, buoyed by optimism central banks will retain or enhance supportive policies as the economy expands, but at a subdued pace.
Data on Friday showed a 0.3% increase in euro-area gross domestic product, with growth in Italy grinding to a halt.
Monetary authorities in Australia, New Zealand and the UK cut benchmark interest rates to records this month, while the Bank of Japan and European Central Bank are using unprecedented stimulus to spur expansion. In oil, speculation that informal OPEC talks next month will stabilize the market buoyed prices.
"The pessimism that had overwhelmed us at the start of the year and immediately post-Brexit is lifting," said Nicolas Lopez, head of research at MG Valores in Madrid. "We should continue to see gains."
Stocks
MSCI’s global stocks gauge was little changed as of 10:40 a.m. London time, heading for a weekly advance of 1.2%.
In Europe, A.P. Moeller Maersk A/S rose 3.5% after Denmark’s biggest company said it increased efficiencies in the second quarter, reporting earnings before interest and tax of $656m, beating an estimate of $551m.
The Stoxx Europe 600 Index was little changed overall, after Thursday recouping its pre-Brexit level. The volume of shares changing hands was 41% lower than the 30-day average at this time of day.
Nordstrom, the largest US luxury department-store chain, surged in late trading after posting second-quarter profit that topped analysts’ estimates, helped by higher sales at its off-price Rack chain and its Anniversary promotional event.
US retail sales are forecast to have increased for a fourth straight month, showing consumers continued to spend after the strongest quarterly advance since 2014.
The MSCI Emerging Markets Index climbed 0.1%, extending the advance since August 5 to 2.6% in the fifth week of gains and the longest run since March 2014.
Chinese stocks led the advance on Friday, with the Shanghai Composite Index climbing 1.6% as stake purchases by China Evergrande Group fuelled optimism that the pace of merger activity in the property industry will accelerate.
Commodities
Crude added 0.8% to $43.83 a barrel in New York headed for a 4.9% weekly jump. Informal discussions being held next month between members of the Organisation of Petroleum Exporting Countries and non-OPEC producers may include possible action to stabilize the market, Saudi Arabia’s Energy Minister Khalid Al-Falih said in a statement, according to media reports, including Reuters.
Global markets will continue to rebalance this year, the International Energy Agency said.
"The Saudi comments gave the market some life," said Jonathan Barratt, chief investment officer at Ayers Alliance Securities in Sydney.
"The talk is all about pushing the price higher and the market will speculate on whether they can actually pull a deal together.
Calls from the IEA that the glut will start to shrink and consumption will pick up are also supportive."
Copper fell 0.7% in London, trimming its weekly gain to 0.5%. Nickel lost 1.8% and aluminium was little changed.
Currencies
The krone strengthened 3.4% versus the greenback this week, the best performance among major currencies and its biggest gain in 10 months. The currencies of Mexico and Canada, which like Norway are also oil-exporting nations, rose 2.7% and 1.5%, respectively.
The MSCI Emerging Markets Index slipped 0.3%. The yuan weakened 0.1% on Friday as Chinese data from factory output to investment suggested an economic recovery may be losing momentum.
Official data for industrial production, retail sales and fixed-asset investment all fell short of economists’ estimates.
One-month forwards for Thailand’s baht fell for the first time this week after a spate of bombings in tourist destinations including Hua Hin and Phuket that killed at least two people.
The nation’s financial markets were shut on Friday for a holiday.
Bonds
UK gilts held a fourth weekly gain, as the Bank of England’s first week of its expanded bond buying plan drew to a close.
The central bank has left its quantitative-easing shopping list broadly unchanged for next week, even after it failed to attract enough sellers of gilts due in more than 15 years to hit its purchase target at an operation on Tuesday.
The yield on 10-year gilts touched a record-low 0.51% on Thursday, and has fallen 12 basis points since August 5.
Spanish and Italian government bonds also headed for their fourth weekly advance. The yield on Spain’s 10-year security was at 0.95%, after touching a record-low 0.913% on Thursday.
China’s 10-year bonds yielded 2.66% the least in data going back to 2006.
Germany’s economy expanded 0.4% in the second quarter, slowing from a 0.7% expansion in the previous three months, data showed on Friday.
In Italy, preliminary figures showed gross domestic product unchanged, disappointing forecasts for growth of 0.2%.
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