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.
“European market and U.S. futures are trading higher ahead of the most-watched economic data on the face of the Earth,” Naeem Aslam, chief market analyst at Think Markets U.K., said by email. “What traders have priced in very much in the market is that the Fed is going to struggle with respect to any further rate hike for this year.”
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.
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Among other key events this week:
U.S. data on non-farm payrolls is due on Friday, along with unemployment and earnings numbers and the Markit U.S. PMI. U.S. employment probably increased by 180,000 in August, in line with this year’s monthly average, while the jobless rate held at 4.3 percent, economists forecast.
Most markets in the Middle east are closed today.
U.S. markets are closed Monday.
And here are the main moves in markets:
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.
The Bloomberg Dollar Spot Index climbed less than 0.05 percent.
The euro increased less than 0.05 percent to $1.1911.
The British pound declined less than 0.05 percent to $1.2925.
The Japanese yen fell 0.1 percent to 110.12 per dollar.
The yield on 10-year Treasuries climbed one basis point to 2.13 percent.
Germany’s 10-year yield gained two basis points to 0.38 percent, the highest in more than a week.
Britain’s 10-year yield increased one basis point to 1.049 percent.
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.