Commodities rose for a third day after Chinese imports reached a record and US index futures advanced on forecasts that consumer confidence improved. European stocks fluctuated and Spanish bonds fell.
The S&P GSCI index of 24 raw materials climbed 0.4 per cent to 610.47 at 12.13 pm in London, led by advances in cotton and corn. Futures on the Standard & Poor’s 500 Index gained 0.3 per cent and the Stoxx Europe 600 Index fluctuated between gains and losses. The yield on 10-year Spanish government bonds climbed nine basis points to 5.39 per cent.
China’s trade surplus and new lending exceeded forecasts in November, underscoring the case for higher interest rates to stem inflation in the world’s fastest-growing major economy. The central bank said today it will raise the amount lenders must hold as reserves by 50 basis points from December 20. US consumer confidence probably climbed to a six-month high, according to the median economist estimate in a Bloomberg survey.
China’s “economy is going great guns at the moment and even appears to be accelerating,” said Mark Williams, a senior China economist at Capital Economics in London. “If you’re looking at the growth numbers, that should be positive for stocks and commodities.”
Copper climbed 1.1 per cent to $9,050 a metric tonne in London, cotton jumped 2.6 per cent to $1.395 a pound in New York and rubber futures in Tokyo reached a 30-year high of ¥385.5 a kilogram.
