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[May 02, 2014]
Dollar Strengthens With Commodities; Ruble Weakens [Yerepouni Daily News (Armenia)]
(Yerepouni Daily News (Armenia) Via Acquire Media NewsEdge) The dollar strengthened and commodities rose before a U.S. jobs report. Spanish and Italian yields dropped to records, while the ruble weakened and Ukraine bonds declined as the government in Kiev sent troops to retake a rebel stronghold.
The dollar rose against most of its major counterparts, advancing 0.2 percent to 102.52 yen at 6:50 a.m. in New York. The S&P GSCI gauge of 24 raw materials climbed 0.5 percent led by oil and wheat. Italy's 10-year bond yield fell two basis points to 3.047 percent and Spain's rate dropped to 2.98 percent. The Stoxx Europe 600 Index and Standard & Poor's 500 Index futures were little changed. Royal Bank of Scotland Group Plc rallied after profit tripled. The ruble slid 0.6 percent against the dollar.
U.S. nonfarm payrolls probably climbed last month the most since November and the jobless rate fell, economists said before a Labor Department report. Ukraine sent armored vehicles and artillery to retake Slovyansk, a stronghold for pro-separatist forces, defying a demand by Russian President Vladimir Putin to pull back troops.
"Markets are going into the report looking for a good number," Ian Stannard, the head of European currency strategy at Morgan Stanley in London said, referring to the U.S. jobs data. "It may make it difficult for a positive surprise to be generated. However, even if we see a weaker print, I think any dollar setback will be temporary." U.S. employers probably added 218,000 workers to payrolls in April, up from an increase of 192,000 in March, according to the median estimate in a Bloomberg survey of 94 economists. The unemployment rate probably slipped to 6.6 percent, according to the median estimate.
Fed Stimulus The Federal Reserve, which announced the fourth straight $10 billion cut to its monthly bond-buying April 30, says the job market in the world's largest economy is improving.
Three shares rose for every two the declined in the Stoxx 600, with trading volumes 8.1 percent below the 30-day average, data compiled by Bloomberg show.
Royal Bank of Scotland, Britain's largest state-owned lender, jumped 7.4 percent. Net income rose to 1.2 billion pounds ($2 billion), beating the 200 million-pound average estimate from eight analysts.
InterContinental Hotels Group Plc climbed 8.3 percent after the world's largest provider of hotel accommodation reported revenue per room that beat analyst expectations and said it will pay a special dividend after selling two properties.
Software AG slid 3.8 percent after the German software maker said first-quarter sales missed analysts' estimates and profit dropped. Carrefour SA (CA) dropped 4.4 percent after Kepler Cheuvreux lowered its recommendation on France's largest retailer.
U.S. Earnings The S&P 500 has climbed 1.1 percent this week. The gauge is 0.4 percent away from its April 2 record.
Chevron Corp., CVS Caremark Corp. and Estee Lauder Cos. are among S&P 500 companies reporting earnings today. About 75 percent of those that have posted profit results this season have beaten analysts' estimates, data compiled by Bloomberg show. Almost 53 percent of them have topped sales projections, according to the data.
The MSCI Emerging Markets Index advanced 0.3 percent, headed for their first weekly gain since the period ended April 11. Turkey's benchmark gauge climbed 1.7 percent as trading resumed following a holiday.
Russia's Micex Index (INDEXCF) slide 0.3 percent as trading resumed after a holiday yesterday. The gauge dropped 4.6 percent in April, its fourth consecutive monthly decline. The yield on Ukraine's April 2023 Eurobond rose 20 basis points to 10.85 percent, the highest in more than six weeks.
Pilots Killed Interior Ministry forces were dispatched today to displace the militants from seized buildings and free hostages, including eight international monitors, minister Arsen Avakov said today on Facebook. Rebels shot down two helicopters using air-defense systems, killing two pilots, the Defense Ministry said. Local media said 10 foreign media workers were missing.
Wheat climbed 0.9 percent on speculation of crop damage from a U.S. Grain Plains drought. Brent climbed 0.7 percent to $108.51 a barrel.
The yield spread between the U.S. 10-year note and its two-year counterpart widened by one basis point, the first increase in four days, to 221 basis points. The gap narrowed to 219 basis points yesterday, the least since Oct. 30.
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