Commodities push stocks higher
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.