S&P 500 futures advance as dollar weakens from four-year high
By Bloomberg
Standard & Poor's 500 Index futures rose, indicating the gauge will rebound after closing at its lowest level in more than a month, while the dollar weakened from a four-year high. China led gains in emerging markets and the ruble strengthened.
S&P 500 Index futures climbed 0.3 percent at 7:15 a.m. in New York and the Stoxx Europe 600 Index increased 0.2 percent. The Bloomberg Dollar Spot Index ended a three-day advance as Greek bonds fell for a third day. The Shanghai Composite Index climbed to the highest level since March 2013. Russia's currency gained the most in almost three weeks and cotton dropped to a five-year low.
Stock index futures advanced before a report that's forecast to show U.S. home sales jumped last month. European stocks reversed losses as a measure of confidence among German executives fell for a fifth month. The U.K. Parliament may be recalled to seek approval for joining U.S. air strikes on Islamic State, opposition Labour Party leader Ed Miliband said.
"Housing is likely to resume recovering," Larry Kantor, Barclays Plc's head of research in New York, wrote in a report. "The U.S. looks attractive in terms of its prospects for growth acceleration."
Futures on the S&P 500 expiring in December advanced after three days of declines, with the gauge closing at its lowest level since Aug. 19. Bed Bath & Beyond Inc. rallied 6.8 percent in pre-market New York trading after posting quarterly profit and sales that topped analysts' estimates.
The Stoxx 600 rose 0.2 percent after sliding the most since July 8 yesterday. Automakers and banks posted the biggest declines among 19 industry groups today.
TNT Express
TNT Express NV sank 11.5 percent after lowering its 2015 profit forecast. PostNL NV, which owns a 15 percent stake in the Dutch package-delivery company, lost 2.7 percent. Adecco SA slid 3.2 percent after the provider of temporary workers said Germany and France had weaker growth than normal this month.
Merck KGaA gained 2.6 percent after Commerzbank AG recommended buying shares of the drug and chemicals company.
The volume of Stoxx 600 shares changing hands today was 39 percent greater than the 30-day average, according to data compiled by Bloomberg.
The MSCI All-Country World Index slipped 0.1 percent, a fourth daily drop. The gauge closed at its lowest level since Aug. 12 yesterday. The MSCI AC Asia Pacific Index was little changed after closing at its lowest level since June 5.
In the U.S., a Commerce Department report at 10 a.m. in Washington will probably show new-home sales rebounded in August following two months of declines, economists forecast.
Dollar Weakens
The dollar weakened against most of its 16 major peers, with the greatest losses coming against its Australian counterpart. The Bloomberg Dollar Spot Index slipped 0.1 percent after reaching the highest level since 2010 yesterday, and the U.S. currency slipped 0.3 percent to 108.56 yen. The ruble climbed 0.8 percent.
Treasury 10-year notes were little changed after rising the past four days, with the yield at 2.54 percent. The U.S. will auction $35 billion of five-year notes today.
Greece's 10-year bond yield rose 10 basis points to 6.17 percent, reaching the highest since Aug. 14. The securities dropped yesterday on concern the nation's proposal to exit its international bailout agreement early would allow the country to backslide on measures to control its debt and deficit.
Cotton Falls
Cotton fell as much as 2.4 percent to the lowest price since Oct. 6, 2009. China, the biggest buyer of the fiber, will restrict imports next year to encourage use of domestic cotton, the government said on Sept. 22. Gold rose 0.2 percent to $1,224.10 an ounce, the third consecutive advance, and copper fell 0.1 percent to $6,713.50 a metric ton, the sixth consecutive decline. Germany is the third-biggest copper consumer.
The Shanghai Composite Index rose 1.5 percent as a jump in new trading accounts lifted brokerages. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong rallied 1.4 percent, rebounding from a two-month low. Investors opened about 217,000 accounts last week, the most in two years, amid speculation an exchange link with Hong Kong and government stimulus will boost stocks, according to data from the China Securities Depository and Clearing.
Russia's Micex added more than 1 percent. AFK Sistema and OAO Bashneft gained as a Moscow City Court delayed an appeal hearing on billionaire Vladimir Evtushenkov's house arrest.
The ruble strengthened 0.6 percent against the dollar as the government held its first local debt auction in 10 weeks.
Markets in the Middle East mostly declined. Dubai's DFM General Index dropped 1.2 percent, the most since Sept. 11, while Abu Dhabi's ADX General Index slipped 0.1 percent, its fourth day retreating. Saudi Arabia's Tadawul All Share Index slid 1.3 percent, on course for the lowest close in a month, while benchmark indexes in Kuwait and Qatar decreased 0.1 percent. Egypt's EGX 30 Index dropped 0.1 percent. Israel's market is closed for a public holiday.
The Borsa Istanbul 100 Index in Turkey rose for the first time in five days, climbing 0.2 percent.