European stocks rose for a second day and copper advanced on speculation central banks will take more steps to boost growth as reports signaled the economic slowdown is deepening. Spain’s bonds gained and emerging-market shares climbed the most in two weeks.
The Stoxx Europe 600 Index added 0.8 percent at 4:30 p.m. in New York, and the MSCI Emerging Markets Index jumped 0.6 percent. Standard & Poor’s 500 Index futures rose 0.3 percent and Brazil’s Bovespa Index snapped three days of declines. The U.S. market is closed for the Labor Day holiday. Spain’s two-year note yield fell 15 basis points to 3.51 percent. Sweden’s krona weakened against its 16 major peers. Copper gained 0.8 percent and nickel jumped 1.7 percent.
Euro-area manufacturing contracted more than initially estimated in August and China’s factory output unexpectedly shrank for the first time in nine months, according to reports from London-based Markit Economics today and a government survey in Beijing Sept. 1. Federal Reserve Chairman Ben S. Bernanke said Aug. 31 that he wouldn’t rule out more stimulus. European Central Bank President Mario Draghi may unveil details of his bond-purchase program after a policy meeting Sept. 6.
“The door for further quantitative easing is clearly not shut and is very much dependent on what the near-term data tells us about the labor market trend,” Jim Reid, a strategist at Deutsche Bank AG in London, said in a research note. “Draghi’s press conference will likely be the highlight of the week with markets hoping for further guidance around the ECB’s bond purchasing program.”
The Stoxx 600 rebounded from two weeks of losses, the first back-to-back declines since May. BHP Billiton Ltd. and Rio Tinto Group led a rally in mining companies. Rhoen-Klinikum AG plunged 21 percent as Fresenius SE decided against reviving its bid for the German hospital operator.
“Bernanke did say if more is needed, the Fed stands by to do more, which is good for the economy, it’s good for markets,” Markus Rosgen, chief Asian strategist at Citigroup Inc., said in a Bloomberg Television interview. “In terms of China, there is certainly more room to ease.”
China’s Purchasing Managers Index fell to 49.2 in August from 50.1 in July, the National Bureau of Statistics and China Federation of Logistics and Purchasing said.
Emerging-market stocks gained for a second day. The Shanghai Composite Index added 0.6 percent, rebounding from the lowest close last week since February 2009. Russia’s Micex Index rose 1.2 percent and benchmark gauges in Hungary, Indonesia and South Korea advanced at least 0.4 percent.
The Bovespa gained 0.4 percent on bets policy makers will cut borrowing costs after a central bank survey showed a lower growth forecast for Latin America’s biggest economy.
Consumer-goods maker Hypermarcas SA rose the most in two weeks, leading gains by companies that sell in the local market while Marfrig Alimentos SA, Brazil’s second-biggest food company, sank 3.6 percent.
The zloty was the second-worst performer among 25 emerging-market currencies, weakening 0.5 percent versus the euro, after a report showed contraction in Polish manufacturing deepened in August more than estimated, adding to slowdown concern.
Copper rose to $7,679 a metric ton and nickel climbed to $16,220 a ton. China is the world’s largest consumer of both metals. Natural gas declined 0.5 percent.
The yield on Italy’s 10-year bond fell eight basis points to 5.77 percent. The yield on German 10-year government bonds rose 4 basis points to 1.38 percent and yields on similar-maturity U.K. gilts were at 1.65 percent.
The Swedish krona depreciated 1.1 percent to 8.4300 per euro, the weakest level since July 27, after an unexpected drop in manufacturing. Australia’s dollar dropped as low as $1.0240, the least since July 25, after a report showed retail sales declined.