Metals Climb on China Export Growth as Stocks Fluctuate

Metals Climb on China Export Growth as Stocks Fluctuate

By Stephen Kirkland and Jason Clenfield

Industrial metals advanced with the Australian and New Zealand currencies as China’s exports topped forecasts. European stocks swung between gains and losses before the region’s finance chiefs meet to discuss Greek aid.

Copper jumped 0.7 percent at 8:20 a.m. in New York. The yuan climbed to a 19-year high and the so-called Aussie gained against its 16 major peers. The Stoxx Europe 600 Index slipped less than 0.1 percent, with trading volume 14 percent below the 30-day average. Standard & Poor’s 500 Index futures added 0.3 percent, indicating the benchmark gauge will rebound from its worst week in five months. Spain’s 10-year note yield rose four basis points. U.S. bond markets were closed for a holiday.

China’s exports jumped 11.6 percent in October, more than the 10 percent median estimate in a Bloomberg survey of 30 analysts, data from the customs administration showed on Nov. 10. European finance ministers meet later today in Brussels after Greek lawmakers passed a 2013 budget needed to unlock bailout funds.

“Global industrial production momentum has begun to improve, led by the U.S. and China,” Aditya Bagaria, a currency strategist at Credit Suisse Group AG in London, said in a report received today. “But for now, risk appetite and risky assets are more likely to be driven by perceptions of progress on the key political uncertainties.” In Europe, “risks for further delays on Greek issues are high at today’s Eurogroup meeting,” Bagaria said.

Fiscal Cliff
Lawmakers from both major U.S. parties and investors including Pacific Investment Management Co. predicted a resolution to the standoff on the so-called fiscal cliff that threatens to trigger $607 billion in tax increases and spending cuts. Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, said a “framework agreement” can be reached. Pimco, which runs the world’s largest bond fund, sees as much as a 70 percent chance a compromise will be struck.

Copper rebounded from the lowest close since August and aluminum added 1.2 percent. China is the biggest buyer of copper and aluminum. Oil in New York fell 0.5 percent to $85.63 a barrel. Soybeans declined as much as 2.1 percent to $14.2125 a bushel, the lowest since June 29.

The Australian dollar rose 0.5 percent versus the U.S. currency and New Zealand’s dollar strengthened 0.4 percent. The euro appreciated 0.1 percent to $1.2727 after sliding to $1.2690 on Nov. 9, the weakest level since Sept. 7.

China’s yuan strengthened to 6.2291 per dollar. The central bank raised its reference rate and the securities regulator said a government quota will be increased to allow more yuan raised overseas to be invested in domestic capital markets.

Telecom Italia
In Europe, Telecom Italia SpA (TIT) climbed 4.6 percent as a person with direct knowledge of the bid said Egyptian billionaire Naguib Sawiris, founder of Orascom Telecom Holding SAE, offered to purchase a stake in the Italian phone company. Cobham Plc tumbled 7.8 percent as the world’s largest maker of airborne-refueling equipment forecast weaker sales and profitability next year.

The MSCI Asia Pacific dropped 0.4 percent and the Nikkei 225 Stock Average slid 0.9 percent after a report showed Japan’s economy contracted last quarter by the most since the earthquake and tsunami in early 2011.

Three stocks fell for every two that gained in the MSCI Emerging Markets Index (MXEF), which was little changed. India’s Sensex lost less than 0.1 percent after industrial production unexpectedly fell, while Russia’s Micex Index increased 0.4 percent. Brazil’s Bovespa index slipped 0.2 percent. South Korea’s Kospi Index slipped 0.2 percent. The Shanghai Composite Index (SHCOMP) climbed 0.5 percent.