Monday, 22 June, 2015

Stocks Climb Amid Deals, Greek Talks as Treasuries Drop With Yen

(Bloomberg) — U.S. stocks followed European equities higher, while Treasuries fell with German bunds on speculation officials will break an impasse over a Greek bailout. The Standard & Poor’s 500 Index rose 0.7 percent at 10:02 a.m. in New York, 0.3 percent below a closing record. The Stoxx Europe 600 Index jumped 2 percent, while a guage of emerging-market stocks added 1.3 percent. Yields on 10-year Treasury notes rose seven basis points to 2.33 percent and Germany’s increased to 0.86 percent. Dutch Finance Minister Jeroen Dijsselbloem said a fresh set of proposals to end a standoff over aid was a positive step. European stocks had pared gains of as much as 2.3 percent after euro-area finance chiefs tempered optimism that a deal was in the offing. A surge in corporate merger activity also boosted equities in Europe and the U.S. “The risk-on mood is driving markets today, not only in bonds but also in equities,” said Patrick Jacq, a senior fixed-income strategist at BNP Paribas SA in Paris. “Clearly the market is playing a positive outcome. But this doesn’t mean we’re going to see an agreement. As long as we don’t have an official agreement between Greece and its creditors the situation remains vulnerable.” Greek Plan JPMorgan Chase & Co. said Greece being ejected from the euro probably won’t rock world markets if the sides fail to reach an agreement and the country defaults on debt owed to the International Monetary Fund. Banks led Greece’s ASE Index up 8.3 percent for the biggest gain among western-European markets. The European Central Bank also approved emergency funding for Greek lenders, said a person familiar with the matter. Deal activity added to equity gains. Williams Cos. surged 24 percent after rejecting a $48 billion stock-based takeover offer from pipeline magnate Kelcy Warren. Cigna Corp. jumped 6 percent after rejecting Anthem Inc.’s $47 billion takeover bid. The S&P 500 turned in the best week since April, rising 0.8 percent as Fed Chair Janet Yellen signaled the central bank won’t be raising rates quickly as officials hold out for more decisive evidence of an economic rebound. Data Monday showed previously owned U.S. homes sold in May at the fastest pace since November 2009, indicating budding momentum in the residential real estate market. Reports are also due this week on durable goods orders, first-quarter economic growth, personal spending and consumer sentiment. Europe Deals In Europe, Bouygues SA jumped 14 percent and Altice SA rallied 15 percent after Patrick Drahi’s company said its cable and wireless unit has made an offer to buy France’s third-largest mobile-phone company from Bouygues. Smaller carrier Iliad SA rose 13 percent as saying it’s in exclusive talks with Altice’s Numericable-SFR to acquire assets. Orange SA gained 7 percent. Sky Plc added 3.7 percent after a report that the Murdoch family rejected two takeover bids for its stake in the U.K. company. The MSCI Emerging Markets Index rose the most in two months, as equity gauges in Hong Kong, India, the Czech Republic and Poland gained at least 1.2 percent. The Hang Seng China Enterprises Index rebounded from the steepest weekly drop since May 2012. Mainland markets were shut Monday for a holiday. Treasuries dropped with higher-rated government bonds around the world as investors moved out of haven assets and into higher-yielding assets. Italian bonds climbed for a fifth day, with the 10-year yield falling 12 basis points to 2.16 percent. Spain’s 10-year bond yield fell 13 basis points to 2.15 percent. The yen declined for the first time in three days, weakening 0.4 percent to 123.17 per dollar. The euro added 0.4 percent versus the yen. West Texas Intermediate crude slid 0.9 percent to $59.08 a barrel in New York. Brent fell 0.6 percent to $62.66. Archr LLP is Authorised and regulated by the Financial Conduct Authority (FCA reference 617163). Archr LLP is not covered by the Financial Services Compensation Scheme (FSCS). Archr is registered in England and Wales No. OC371018. Registered office Chancery House, 30 St Johns Road, Woking, Surrey, GU21 7SA This message may contain confidential or privileged information. If you are not the intended recipient, please advise us immediately and delete this message. The unauthorised use, disclosure, distribution and/or copying of this e-mail or any information it contains is prohibited. This information is not, and should not be construed as, a recommendation, solicitation or offer to buy or sell any securities or related financial products. This information does not constitute investment advice, does not constitute a personal recommendation and has been prepared without regard to the individual financial circumstances, needs or objectives of persons who receive it. You are receiving this email because you are a valued client of Archr.