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Europe Stocks Gain With U.S. Index Futures as Kiwi Falls [Yerepouni Daily News (Armenia)]
[August 19, 2014]

Europe Stocks Gain With U.S. Index Futures as Kiwi Falls [Yerepouni Daily News (Armenia)]


(Yerepouni Daily News (Armenia) Via Acquire Media NewsEdge) European and Asian shares rose with U.S. equity-index futures (SPA) as global geopolitical concerns eased amid a rally in technology stocks. Australian bonds followed Treasuries lower as the New Zealand dollar weakened, while crude oil advanced with metals.



The Stoxx Europe 600 Index increased 0.5 percent by 8:20 a.m. in London as Nasdaq 100 Index futures signaled U.S. technology stocks will extend their highest close since 2000. The MSCI Asia Pacific Index added 0.7 percent. Ten-year Australian bonds fell and the kiwi lost 0.4 percent amid a drop in producer prices and a reduced economic-growth forecast. Oil in New York advanced with nickel, while wheat and corn fell.

The Red Cross is close to a safe-passage plan for a Russian aid convoy intended for Ukraine after truce talks stalled. Ukraine's central bank increased rates while Australia's reiterated that it sees a period of rates stability in minutes of its last meeting. The U.S. reports on inflation before central bankers meet in Jackson Hole, Wyoming, this week.


"While the easing of geopolitical tensions overnight is encouraging, we have seen Russian tensions oscillate over the past few weeks, so traders shouldn't become too complacent," Garry Dean, a sales trader in Auckland at CMC Markets, wrote in an e-mail to clients. The Fed minutes "are likely to show a continued dovish stance despite recent dissenting comments from some members." The Stoxx 600 and the Asia-Pacific gauge are heading for their highest closing levels this month. The European gauge trades at 15.1 times estimated earnings compared with 13.7 for the Asian measure and 16.5 times projected earnings for the Standard & Poor's 500 Index.

Tech Rally A.P. Moeller-Maersk A/S jumped 5.2 percent after raising its full-year profit forecast. The company's container-shipping line, the world's largest, said earnings are rising because of higher freight volumes and lower costs.

Samsung Electronics Co., the Korean maker of Galaxy smartphones, climbed 0.3 percent while SoftBank Corp., controlled by billionaire Masayoshi Son, added 2 percent in Tokyo. Taiwan Semiconductor Manufacturing Co. added 0.8 percent. Xero Ltd. jumped 8 percent in Wellington, with the maker of accounting software proving the biggest support for the NZX 50 Index's 0.9 percent advance.

The Nasdaq 100 Index rose a fourth day in New York, adding 0.8 percent to the highest close since Sept. 1, 2000, led by Yahoo! Inc. The broader Nasdaq Composite Index (CCMP) gained 1 percent to the highest level since March 2000, up 13 percent from this year's closing low reached Feb. 3.

Hang Seng The Standard & Poor's 500 Index climbed 0.9 percent, this most since Aug. 8. Futures on the U.S. benchmark added 0.3 percent in trading today while Nasdaq 100 contracts climbed 0.3 percent.

Hong Kong's Hang Seng Index climbed 0.9 percent as casino shares rallied after Galaxy Entertainment Group Ltd. reported better-than-estimated earnings. The gauge is heading for its highest close since May 2008. A gauge of Chinese shares in the city climbed 0.5 percent.

The International Committee of the Red Cross expects to work out "soon" details of how to accompany the Russian aid trucks across the border into Ukraine and related issues, according to ICRC spokeswoman Galina Balzamova. She gave no estimate of timing for a safety guarantee, and said the ICRC is "extremely concerned" about the humanitarian crisis in the battle-plagued regions.

The ruble weakened 0.2 percent to 36.1345 per dollar and to 48.2580 to a euro. The Micex Index (INDEXCF) climbed 0.8 percent, for an eighth straight advance in Moscow.

Talks Stall No time was specified for a possible resumption of the truce talks that started in Berlin yesterday. Ukraine's president Petro Poroshenko saying that the next step would be a meeting at the "highest level," according to a statement on his website.

In Kiev, military spokesman Andriy Lysenko said yesterday that pro-Russian separatists shelled a column of civilian vehicles in the Luhansk region, killing "dozens of people." There was no independent confirmation of the claim.

Wheat for December delivery declined 1 percent to $5.49 a bushel on the Chicago Board of Trade. Prices fell 1.6 percent yesterday, the biggest decline in almost a week. Corn slipped 0.8 percent to $3.685 a bushel.

West Texas Intermediate oil futures climbed as much as 0.5 percent to $96.92 in New York. Crude stockpiles probably fell by 1.75 million barrels to 365.3 million last week, a Bloomberg News survey shows before a report from the Energy Information Administration tomorrow.

Brent, Treasuries Brent added 0.3 percent to $101.84 today after sliding to the lowest price in almost 14 months yesterday as Kurdish and Iraqi forces regained control of Iraq's largest dam, stalling an advance by militants.

Yields on 10-year U.S. Treasuries were little changed at 2.39 percent today, after snapping a three-day drop in New York to rise five basis points. Australian notes due in a decade yielded 3.40 percent, up six basis points, or 0.06 percentage point. The Aussie dollar added 0.1 percent to 93.31 U.S. cents after the RBA's minutes.

Rates on 10-year New Zealand government debt climbed three basis points to 4.13 percent after declining about 11 basis points over the past three trading days.

The kiwi dropped to 84.43 U.S. cents in a third day of losses, touching 84.26, the weakest intraday level since Aug. 13. New Zealand's government cut its forecast for economic growth and projected smaller budget surpluses as it opened the books a month before a general election.

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