Stocks Rise With Copper on China Loans as Pound Gains

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gsr-78Stocks rose, with a global benchmark extending the longest rally since 2010, and copper climbed after record lending boosted prospects for growth in China. Italian bonds gained while gold and silver advanced.

The MSCI All-Country World Index increased for a ninth day, adding 0.3 percent at 8:53 a.m. in New York. Standard & Poor’s 500 Index (SPX) futures climbed 0.2 percent, with U.S. markets shut for Presidents’ Day. Shanghai’s equity gauge jumped to a two-month high, with the Philippine peso and Indonesian rupiah leading gains in emerging-market currencies. Italy’s 10-year yield fell to an eight-year low as Democratic Party leader Matteo Renzi was picked to form a government. Copper rose 0.3 percent, gold advanced 0.6 percent and silver extended its longest run of gains since at least 1968.

China’s aggregate financing, the broadest measure of credit, climbed to 2.58 trillion yuan ($425 billion), the central bank said Feb. 15, spurring optimism Asia’s largest economy will maintain momentum amid government efforts to rein in risky lending. About $1.5 trillion was added to the value of global equities last week, the most in five months, as better-than-estimated Chinese trade data bolstered emerging markets and Federal Reserve Chairman Janet Yellen reassured investors the U.S. economy was strong enough to weather stimulus cuts.

“The money and credit data have reinforced the sense that China’s not on the verge of collapsing and that’s always a positive,” Tim Condon, Singapore-based head of Asian research at ING Groep NV, said by phone.

The Stoxx Europe 600 Index rose 0.4 percent, with trading volumes 28 percent less than the 30-day average, according to data compiled by Bloomberg. The index climbed 2.5 percent last week, the most this year.

Commodity Producers

Polymetal International Plc gained 3.3 percent, leading basic-resource stocks higher. SGL Carbon SE jumped 11 percent after Bayerische Motoren Werke AG said the two companies are building a second production hall at a jointly run plant to meet rising demand for carbon fiber.

Neste Oil Oyj lost 5.5 percent after Nordea Bank AB reduced its stock rating on Finland’s only oil refiner.

The MSCI Emerging Markets Index rose 0.8 percent to a three-week high. Benchmark gauges in Indonesia,South Africa, Thailand and Turkey added at least 1 percent. Brazil’s Ibovespa index was little changed.

The Shanghai Composite Index increased 0.9 percent. The Hang Seng China Enterprises gauge of mainland companies listed in Hong Kong jumped 1.7 percent.

China Lending

In addition to aggregate financing, new local-currency lending was 1.32 trillion yuan, the highest level since 2010. Trust loans, under scrutiny because of default risks, were about half the level of a year earlier.

“The strong new credit growth figures in China should help all risky assets, including equities and commodities,” Slava Smolyaninov, chief strategist at UralSib Capital LLC in Moscow, said in an e-mailed note.

Thailand’s SET index jumped 1.6 percent and the baht strengthened after police began dismantling anti-government demonstration sites. Gross domestic product rose 0.6 percent in the fourth quarter from a year earlier, more than the 0.3 percent median estimate in a Bloomberg survey, official data showed today.

Copper advanced for a second day to $7,170 a metric ton, while lead, zinc and nickel gained at least 0.8 percent. U.S. natural gas rallied 4.14 percent.

Silver Rallies

Gold rose as much as 0.9 percent to $1,330.03 an ounce, the highest level since Oct. 31, and silver gained for a 12th day, advancing 1.3 percent. U.S. factory production unexpectedly declined in January by the most since May 2009, according to a report released on Feb. 1.

Italy’s 10-year yield fell seven basis points, or 0.07 percentage point, to 3.62 percent, the lowest level since January 2006. Spain’s 10-year yield touched 3.51 percent, also the lowest rate since 2006. The rate on similar-maturity Portuguese debt reached 4.82 percent, the lowest since June 2010.

The average yield on bonds from Greece, Ireland, Italy, Portugal and Spain fell to 2.65 percent on Feb. 14, the lowest on record, according to Bank of America Merrill Lynch indexes going back to 1998.

Britain’s pound reached $1.6823, the strongest level since November 2009, before trading little changed at $1.6727. Rightmove Plc said asking prices for U.K. homes rose 3.3 percent this month from January.