Com­modi­ties push stocks higher

Malta Independent - - FINANCIAL -

On Fri­day stocks gained with com­modi­ties as Chi­nese in­fla­tion data as­suaged in­vestor angst fu­eled by a shock slump in ex­ports.

Euro­pean shares erased this week’s losses and emerg­ing mar­kets snapped a three-day slide af­ter a re­port showed China’s pro­ducer prices rose for the first time since 2012. Crude oil ex­tended a fourth week of gains in the long­est win­ning streak since April. The yen fell with bonds as de­mand for havens eased. Thai­land’s stocks jumped the most in five years and its cur­rency surged on prospects for a smooth tran­si­tion of power af­ter the king’s death.

China’s in­fla­tion re­port con­trasts with data on Thurs­day that showed the na­tion had its steep­est drop in ex­ports since Fe­bru­ary, af­fect­ing mar­kets around the world. In­vestor at­ten­tion will turn Fri­day to earn­ings from com­pa­nies in­clud­ing JPMor­gan Chase & Co., Cit­i­group Inc. and Wells Fargo & Co. as well as data on re­tail sales be­fore Fed­eral Re­serve Chair Janet Yellen speaks at a con­fer­ence in Bos­ton.

The Stoxx Europe 600 In­dex gained 1.3 per­cent. Rio Tinto Group and BHP Bil­li­ton Ltd. con­trib­uted the most to gains among com­mod­ity pro­duc­ers. The MSCI Emerg­ing Mar­kets In­dex rose 0.7 per­cent.

Banco Popo­lare SC and Banca Popo­lare di Mi­lano Scarl rose the most among the big­gest Euro­pean banks on op­ti­mism that share­hold­ers will this week­end back their merger to cre­ate Italy’s third-largest lender.

Oil climbed 1.2 per­cent to $51.02 a bar­rel. Dis­til­late and gaso­line sup­plies de­clined as re­finer­ies pro­cessed less crude, while in­ven­to­ries at Cush­ing, Ok­la­homa, fell to the low­est level since De­cem­ber, ac­cord­ing to an En­ergy In­for­ma­tion Ad­min­is­tra­tion re­port Thurs­day.

In­dus­trial met­als were broadly higher in Shang­hai and Lon­don. Alu­minum in China rose to the high­est level in al­most five months, fol­low­ing a rise in the lo­cal spot price amid a new Chi­nese reg­u­la­tion that clamps down on truck over­load­ing, which is dis­rupt­ing de­liv­er­ies.

Gold slipped 0.4 per­cent to $1,253.17 an ounce, giv­ing back gains from Thurs­day.

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