Friday, 24 October 2014

Europe Stocks, S&P 500 Futures Pare Losses as Bonds Gain


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Bloomberg. European shares and U.S. equity-index futures pared earlier losses. Sovereign bonds rose after a doctor in New York tested positive for Ebola. Oil slid.

The Stoxx Europe 600 Index dropped less than 0.1 percent at 9:51 a.m. in London, trimming its biggest weekly gain of the year. Standard & Poor’s 500 Index futures fell 0.1 percent after losing as much as 0.7 percent earlier. German 10-year yields slid three basis points. Brent crude slipped 0.9 percent. The yen snapped a six-day drop, and Russia’s ruble fell to a record against the dollar. The pound halted a three-day decline versus the dollar as a report showed the U.K.’s pace of economic growth slowed in the third quarter.

Almost $1.8 trillion was added to the value of global shares since Oct. 16 on speculation central banks will maintain stimulus measures. In the U.S., a New York City doctor tested positive for Ebola after returning from work in West Africa with an aid agency, a government official said. Sales of new U.S. homes dropped last month, economists estimate. Procter & Gamble Co., Ford Motor Co. and United Parcel Service Inc. are among companies reporting earnings today. On Oct. 26, the European Central Bank will give the results of its stress tests, and Brazil is scheduled to hold its presidential runoff ballot.

“Despite the economic recovery in the U.S., the overall outlook is not that strong and the Ebola scare is adding to uncertainty about growth,” said Alessandro Giansanti, a senior rates strategist at ING Groep NV in Amsterdam. “Ebola added to risk-off sentiment which underpins demand for haven assets like Treasuries.”

Reference: Nick Gentle and Cecile Vannucci

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