Stocks rose, with a benchmark of European equities climbing to a six-year high, while Italian and Spanish bonds advanced as policy makers said they would take steps to support economic growth. Shares in Russia gained and crude oil fell as Ukraine elected a new president.
The Stoxx Europe 600 Index climbed 0.6 percent to the highest level since January 2008. Standard & Poor’s 500 Index futures added 0.4 percent at 3:25 p.m. in New York. Italian 10-year yields dropped the most since June 2013. Russia’s Micex index rose 0.7 percent and Ukrainian stocks advanced the most worldwide. The Ibovespa rose as analysts boosted estimates for Brazil’s growth this year. Brent crude slid 0.2 percent. Markets were shut in the U.S. and U.K. for holidays.
European Central Bank President Mario Draghi signaled today that officials are ready to take action against low inflation, while China’s Premier Li Keqiang said in a May 23 statement the government will adjust policy to help the economy. Italian bond yields tumbled after Prime Minister Matteo Renzi’s party defeated a populist challenge in European Parliamentary elections. Billionaire Petro Poroshenko’s victory in Ukraine’s presidential vote was welcomed by the U.S. and Europe.
“European stocks are pushing higher on the back of investors’ anticipation that the ECB will have to announce stimulus measures at their June 5 meeting,” said Benedict Goette, the chief executive officer of Compass Capital AG in Zurich, where he helps oversee about $790 million. “This market strength might well continue into early June.”
The Stoxx 600 climbed for a fourth day, with trading volume at 63 percent of the daily average over the past three months.
Canadian stocks were little changed. Copper miners Lundin Mining Corp. and Teck Resources Ltd. climbed at least 0.3 percent as the commodity advanced. Black Diamond Group Ltd. added 0.5 percent after saying it had signed a $34 million contract to build a camp in the Montney natural-gas region in British Columbia.
Shares of Pfizer Inc. traded in Germany reversed losses after the biggest U.S. drugmaker abandoned efforts to buy AstraZeneca Plc for 69.4 billion pounds ($117 billion) in what would have been the biggest deal ever in the drug industry. The stock rose 0.2 percent after being down as much as 1 percent.
Isagen SA fell 4.4 percent in Bogota, the most since January, after Oscar Ivan Zuluaga, who opposes the sale of the government’s stake in the power company, led the first round of Colombia’s presidential vote.
Italian banks rallied, with Banca Popolare dell’Emilia Romagna SC gaining 9.2 percent. UniCredit SpA and Intesa Sanpaolo SpA advanced at least 4.2 percent each.
Atos (ATO) rose 6.2 percent after the French computer-services supplier offered to buy rival Bull for about 620 million euros ($844 million). Getinge AB fell 10 percent as the Swedish hospital-equipment maker postponed its investor day because of U.S. Food and Drug Administration talks on its quality systems.
The MSCI All-Country World Index rose 0.3 percent to the highest level since November 2007. The MSCI Asia Pacific Index (MXAP) gained 0.4 percent to a five-month high.
Brazilian food company BRF SA and homebuilder MRV Engenharia e Participacoes SA advanced in Sao Paulo as analysts raised their estimates for growth in Latin America’s largest economy in a weekly central bank survey published today.
Mexico’s IPC index climbed after the country reported its third trade surplus in a row in April, the longest streak in almost two years, as manufacturing exports surged, signaling the economy is recovering.
In Russia, the Micex Index (INDEXCF) climbed to the highest since Feb. 26, erasing losses since President Vladimir Putin’s incursion into the Crimea region. The ruble was little changed against the dollar.
The Ukrainian Equities Index (PFTS) jumped 4.9 percent, the most among more than 90 equity indexes tracked by Bloomberg worldwide. The hryvnia rose 0.3 percent against the dollar.
Ukraine’s Central Election Commission declared Poroshenko the winner with 54.2 percent of the vote, with 90 percent of ballots counted, Novosti Donbassa said. Russian and Ukrainian assets rallied this month amid speculation a clear electoral verdict would spur talks on calming the crisis.
Poroshenko vowed to step up operations to rein in separatists in the east of the country in Kiev today. In Moscow, Foreign Minister Sergei Lavrov said that any escalation would be a “colossal mistake.”
India’s S&P BSE Sensex (SENSEX) rose 0.1 percent. Narendra Modi, who was sworn in today as India’s prime minister, signaled he would cut the number of cabinet ministers in an overhaul of the nation’s top decision-making body.
The Shanghai Composite Index added 0.3 percent in its second day of gains. China’s benchmark money-market rate dropped the most in three weeks after Li signaled more policy easing to counter a slowdown in the world’s second-largest economy.
“Premier Li’s comments, which have been consistent with previous comments that the central government will take actions to stabilize growth, assured the market that there won’t be a rate spike in June,” said Chen Peng, an analyst at Fortune Securities Co. in Shenzhen.
Italian 10-year yields slid 17 basis points to 2.98 percent, while the rate on similar-maturity Spanish debt declined nine basis points to 2.89 percent.
The Portuguese 10-year yield fell for a fourth day, slipping six basis points to 3.7 percent.
ECB’s Draghi said in Portugal that policy makers need to be “particularly watchful” of low inflation, without elaborating on specific actions. Officials have said they’re working on a package of possible stimulus measures for the central bank’s June 5 policy meeting.
The euro rose 0.1 percent to $1.3646 after falling to a three-month low of $1.3615. The yen climbed less than 0.1 percent to 101.92 per dollar.
Platinum climbed 0.3 percent to $1,477 an ounce, following a 0.5 percent advance last week. Gold was little changed at $1,293 an ounce after slipping 0.1 percent in the five days to May 23. The London Metal Exchange was closed today.
Brent crude fell to $110.32 a barrel. The contract reached $110.55 on May 21, the highest close since March 3, as fighting in Ukraine stoked speculation supplies from Russia may be impacted. West Texas Intermediate crude dropped 0.2 percent to $104.18 a barrel in electronic trading today, after climbing 2.7 percent last week in a third week of gains.
To contact the editors responsible for this story: Alexander Kwiatkowski at firstname.lastname@example.org Brendan Walsh