U.S. Equity Futures, Oil Gain as China’s Factory Output Climbs
U.S. equity futures and oil rose after China’s factory output and retail sales topped forecasts, a sign that the economic recovery is accelerating.
Standard & Poor’s 500 Index futures climbed 0.1 percent to 1,417.60 as of 8:09 a.m. in Tokyo. Oil increased 0.2 percent to $86.47 a barrel in New York. The euro weakened for a fourth day, slipping 0.2 percent to $1.2904.
China’s industrial production climbed 10.1 percent in November from a year earlier and retail sales growth accelerated to 14.9 percent, while inflation was 2 percent, the statistics bureau said yesterday. Greece is near to reaching its target in a buyback of sovereign debt that will unlock aid from the International Monetary Fund and the European Union, according to a Greek government official.
The amount offered in the buyback of Greece’s bonds is close to 30 billion euros, the official at the Finance Ministry said on condition of anonymity, referring to the face value of the securities. The transaction went “very well,” Prime Minister Antonis Samaras told reporters in Munich late yesterday after meeting leaders of the German state of Bavaria.
China’s economic revival and inflation running at half the pace of this year’s target may help the Communist Party’s new leadership maintain public support after a once-a-decade power transition. Challenges for the nation’s next president, Xi Jinping, include a wealth gap that the same household survey indicates is 50 percent higher than the level that risks triggering social unrest.
Economic reports later this week may show sales at U.S. retailers rose in November as the holiday shopping season got under way and demand for U.S. automobiles rebounded after superstorm Sandy.
U.S. stocks advanced last week, giving the S&P 500 its longest winning streak since August, as employment growth topped forecasts and investors weighed prospects for a budget agreement in Washington. The S&P 500 increased 0.1 percent to 1,418.07 for the week.
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