Irish Bonds Climb on Rating Upgrade as Oil to Copper FallStephen Kirkland and Rachel Evans
Irish bonds led gains in European debt after Moody’s Investors Service raised the nation’s credit rating from junk. Asian stocks, crude oil and copper declined as growth in Chinese factory output trailed estimates, while the Australian dollar rebounded and platinum jumped.
Ten-year Irish bond yields sank 20 basis points to 3.24 percent by 4:05 p.m. in New York. European shares fell as Deutsche Bank AG slid 5.4 percent after posting a surprise loss. The MSCI Asia Pacific Index snapped a three-day climb while Brazil’s Ibovespa fell to a five-month low and Canadian stocks rose. Oil in New York slipped from a two-week high as copper fell 0.4 percent while platinum gained the most since October. Australia’s dollar rose for the first time in five days.
Moody’s raised Ireland to Baa3 from Ba1 with a positive outlook, the third major credit-rating firm to rank the country as investment grade. Chinese industrial production grew at the slowest pace since July last month after President Xi Jinping scrapped a goal of “relatively fast” growth in his first year in power. Standard & Poor’s 500 futures were little changed with U.S. markets closed for the Martin Luther King holiday.
“The cycle has really turned for the peripheral countries and we expect it to continue,” said Allan von Mehren, the chief analyst at Danske Bank A/S in Copenhagen. “We see fundamentals improving and at the same time we have very, very low rates so there’s this hunt for yield among investors.”
Yields on Italy’s 10-year bonds fell two basis points, or 0.02 percentage point, to 3.8 percent. Spain’s 10-year yield declined as much as seven basis points to 3.64 percent, the lowest level since September 2006.
PSA Peugeot Citroen tumbled 11 percent in Paris as the Stoxx Europe 600 Index retreated 0.1 percent. Europe’s second-biggest carmaker is considering a capital increase of 3 billion euros ($4 billion) to raise funds for new models and expand in growth markets. Air France-KLM Group lost 5 percent after UBS AG reduced its rating on the region’s largest airline.
Anheuser-Busch InBev NV, the world’s biggest beermaker, rose 1.3 percent after agreeing to pay $5.8 billion to buy back South Korea’s Oriental Brewery Co. Ltd.
In Canada, the S&P/TSX Composite Index climbed a fifth day, adding 0.6 percent as BlackBerry Ltd. surged 7.3 percent to the highest close since September. The U.S. Department of Defense said the company’s smartphones will account for 98 percent of devices in one of its new networks.
The MSCI Emerging Markets Index dropped 0.2 percent, declining a third trading day. Iron-ore producer Vale SA fell 2.8 percent in Sao Paulo, leading the IBovespa down 1 percent to the lowest level since Aug. 7.
MSCI’s Asia Pacific Index decreased 0.2 percent as stock gauges from Japan to Australia declined.
The Shanghai Composite Index fell 0.7 percent to 1,991.25, trading below the 2,000 level for the first time in almost six months. Output from Chinese factories rose 9.7 percent in December from a year earlier, compared with the 9.8 percent median forecast of analysts and a 10 percent gain in November. Gross domestic product increased 7.7 percent in the fourth quarter from 7.8 percent in the third quarter.
Ukraine’s benchmark stock index dropped 2.8 percent, the most since April. Street violence flared in Kiev yesterday as protesters battled police in defiance of new laws aimed at subduing anti-government demonstrations that started two months ago.
Thailand’s SET Index retreated 0.4 percent. At least 28 people were injured as two explosions rocked a protest site in Bangkok yesterday, adding to almost daily attacks as groups push to oust Prime Minister Yingluck Shinawatra and derail a Feb. 2 election.
India’s S&P BSE Sensex Index rose for the first time in three days, climbing 0.7 percent, as Wipro Ltd., the nation’s third-biggest software-services provider, led a rally by technology shares after reporting higher profit.
Russia’s Micex Index gained 0.6 percent as Goldman Sachs Group Inc. said equities are the “preferred asset” in the country.
Australia’s dollar climbed 0.2 percent to 88.02 U.S. cents after touching the weakest level in more than three years last week. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, fell 0.2 percent in its first decline in five days. The yen was little changed at 104.21 per dollar and the euro gained 0.2 percent to $1.3565.
West Texas Intermediate oil slipped 0.7 percent in electronic trading on the New York Mercantile Exchange, to $93.72 a barrel. Copper for three-month delivery dropped to $7,314 a metric ton on the London Metal Exchange after the economic data from China, the world’s biggest consumer of the metal. Nickel slumped the most in four months after a 6 percent surge last week.
Platinum rose 1 percent amid plans for a strike among workers at mines in South Africa. At least 70,000 members of the Association of Mineworkers and Construction Union plan to walk out over pay on Jan. 23 at mines run by Anglo American Platinum Ltd., Impala Platinum Ltd. and Lonmin Plc.