Stocks Rise on Budget Optimism; Euro Drops on France
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Global stocks surged the most since July amid optimism a deal can be reached to avoid automatic U.S. spending cuts and tax increases. Oil led commodities higher, while Treasuries fell. The euro fell after France lost its top credit rating with Moody’s Investors Service.
The MSCI All-Country World Index advanced 2 percent as of 4 p.m. in New York, ending an eight-day decline, and the Standard & Poor’s 500 Index jumped 2 percent to 1,386.89 for its biggest gain in two months. Oil rose to a one-month high amid concern Middle East unrest will disrupt supply. Treasury 10-year yields rose three basis points to 1.61 percent. The euro fell 0.3 percent to $1.2777 at 5:34 p.m. New York time, reversing an earlier gain.