Europe stocks and commodities rose for a third day after Greececanceled a referendum on a bailout plan and lawmakers prepared to hold a confidence vote. U.S. index futures were little changed before a payrolls report.
The Stoxx Europe 600 Index added 0.2 percent at 7:10 a.m. in New York, paring gains after a report showed German factory orders unexpectedly dropped. Standard & Poor’s 500 Index futures slipped 0.2 percent. The yield on the Greek two-year note climbed 47 basis points to 102.77 percent, rising for the fourth consecutive day, with the price at 31 percent of face value. The Swiss franc weakened against all 16 major peers monitored by Bloomberg. The S&P GSCI index of commodities jumped 0.6 percent.
Greek Prime Minister George Papandreou scrapped the referendum on a bailout approved by European leaders last week to avert a split in his party before the confidence vote in parliament set for midnight. U.S. employers probably took on fewer workers in October, economists said before today’s Labor Department report.
Greece’s decision to back down on the referendum “helped instill at least some confidence in a market that remains jittery,” said Peter Stanhope, an institutional trader at IG Markets in Melbourne.
The Stoxx 600 has declined 2.5 percent this week, snapping a five-week winning streak. Lafarge SA, the world’s biggest cement maker, rallied 6 percent after reporting third-quarter profit that beat analysts’ estimates. Alcatel-Lucent SA sank 9.5 percent as France’s largest telecommunications equipment supplier cut its earnings forecast.
Anglo American Plc climbed 4 percent after agreeing to buy the Oppenheimer family’s 40 percent stake in De Beers for $5.1 billion, increasing its holding to as much as 85 percent.
The S&P 500 index (SPX) has gained 3.5 percent in the past two days. Groupon Inc. shares start trading today under the symbol GRPN after the biggest online-coupon provider raised $700 million in its initial public offering. LinkedIn Corp. sank 11 percent in German trading after the biggest professional- networking website reported a third-quarter loss.
A report at 8:30 a.m. in Washington is likely to show that U.S. payrolls increased by 95,000 workers last month after a 103,000 increase in September, according to the median forecast of 65 economists surveyed by Bloomberg News.
The yield on the 10-year Greek bond fell 66 basis points, snapping a four-day advance, while the yield on the Irish security due in October 2020 declined five basis points.
The Swiss franc depreciated 0.9 percent against the euro and weakened 0.7 percent versus the dollar. The euro strengthened 0.1 percent to $1.3843.
Copper climbed 1.1 percent, the third consecutive advance as inventories in warehouses monitored by the London Metal Exchange dropped for a 10th day. Natural gas jumped 0.8 percent. About 51 percent of U.S. households use natural gas for heating, according to the Energy Department.
The MSCI Emerging Markets Index rose 1.9 percent, the most in a week. Hang Seng China Enterprises Index of Chinese companies listed in Hong Kong jumped 3.8 percent and South Korea’s Kospi Index rose 3 percent. Funds investing in developing-nation stocks attracted $3.5 billion in the week ended Nov. 2, the most since April, according to a Citigroup Inc. report, citing figures compiled by EPFR Global.
To contact the reporter on this story: Stephen Kirkland in London at firstname.lastname@example.org
To contact the editor responsible for this story: Stuart Wallace at email@example.com