European shares advance
On Friday 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 U.S. jobs report for clues on the Federal Reserve’s policy-tightening path.
The Stocks Europe 600 Index gained a third day, with media companies among the winners 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 much of Thursday’s increase, while gasoline remained at an elevated level after Tropical Storm Harvey knocked out a quarter of refining capacity. Japan’s benchmark bond yield fell below zero percent for the first time since November.
The Stoxx Europe 600 Index gained 0.4 percent as of 11:39 a.m. in London, the highest in more than a week. Futures on the S&P 500 Index climbed 0.2 percent, reaching the highest in more than three weeks on its sixth straight advance. The MSCI All-Country World Index increased 0.2 percent to the highest in more than three weeks.
U.S. 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. The focus now turns to jobs and earnings 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.
West Texas Intermediate crude declined 1.1 percent to $46.73 a barrel. Copper increased 0.3 percent to $6,807.00 per metric ton, the highest in almost three years. Gold fell 0.2 percent to $1,318.55 an ounce, the largest fall in more than a week.
This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.