Israel’s benchmark index (SPGSCI) rose to a record and Saudi Arabian shares climbed as Iran agreed to limit its nuclear program in exchange for relief from some sanctions. Asian index futures advanced, while the yen traded near its lowest level in more than four months against the dollar.
The TA-25 Index (TA-25) rallied a seventh day, jumping 0.6 percent to an all-time high in Tel Aviv. Saudi Arabia’s Tadawul All Share Index also climbed 0.6 percent. Nikkei 225 Stock Average futures added 0.5 percent in Osaka Nov. 23, while index futures from Australia to South Korea advanced after the Standard & Poor’s 500 Index (SPX) capped a seventh weekly gain. The yen was little changed at 101.29 per dollar by 7:33 a.m. in Tokyo after touching Nov. 22 the weakest level since July. Iran’s rial jumped more than 2 percent on the black market yesterday.
Iran agreed yesterday to curtail its nuclear activities in return for easing of some sanctions on oil, auto parts, gold and precious metals. The deal will have “muted” effect on crude as the country’s oil sales remain capped, Societe Generale SA to Nomura Holdings Inc. said. U.S. job openings climbed to a five-year high in September, data Nov. 22 showed, while Germany’s Ifo business climate index rose more than predicted. Singapore may post the fastest inflation since March today.
The Iran deal “may provide a more supportive backdrop across the board in terms of there being less political risk, but it’s not going to be the key focus of the week,” Chris Green, director of economics and strategy in Auckland at First NZ Capital Ltd., said by phone today. “The idea of tapering and the potentially more hawkish tone from the Fed is still key.”
Minutes of the Federal Reserve’s October meeting released last week showed officials may reduce their $ 85 billion a month of bond buying should the economy improve as anticipated. Stimulus from the Fed has helped the S&P 500 soar 167 percent since its March 2009 low. The index has rallied 27 percent this year, headed for its best annual performance in 15 years.
Futures on Australia’s S&P/ASX 200 Index climbed 0.4 percent Nov. 23, after the gauge slid 1.2 percent last week in its second weekly decline in November. Contracts on the Kospi Index (KOSPI) in Seoul added 0.3 percent in their most recent trading session, while Hang Seng Index futures gained less than 0.1 percent. Futures on the Hang Seng China Enterprises Index, which last week posted the steepest jump since the end of 2011, rose 0.1 percent.
The Bloomberg China-US Equity Index of the most-traded Chinese stocks in New York fell 0.1 percent Nov. 22, rising 1.3 percent in the week.
The yen depreciated 1.1 percent versus the dollar last week, its fourth straight weekly drop and the longest stretch of declines since February. Japan’s currency touched the weakest level since October 2009 versus the euro at the end of last week.
The Australian dollar, known as the Aussie, lost 0.2 percent today to 91.68 U.S. cents after slipping the past three trading days. The currency lost 2 percent last week, the biggest drop versus the dollar among 16 major currencies tracked by Bloomberg, after Reserve Bank of Australia Governor Glenn Stevens said Nov. 21 that foreign-exchange intervention can be effective as long as it’s “judiciously used in the right circumstances.”
New Zealand’s dollar weakened a fourth day, losing 0.1 percent to 81.88 U.S. cents after closing at a two-month low Nov. 22.
Consumer prices in Singapore probably rose 2.2 percent in October from a year earlier, after growing 1.6 percent in September, according to the median of 11 economists’ estimates in a Bloomberg survey. Taiwanese industrial production may have risen 1 percent, after expanding 1.06 percent in September, a separate survey before data today showed.
Job openings in the U.S. climbed to 3.91 million in September, the most since May 2008, indicating employers were confident about demand before the federal government shutdown. Reports last week also showed weekly jobless claims fell to the lowest level since September and American consumers became less pessimistic this month.
The S&P 500 rose a second day Nov. 22, adding 0.5 percent to bring its weekly climb to 0.4 percent. The Dow Jones Industrial Average (INDU) gained 0.3 percent Nov. 22 after closing the previous day above 16,000 for the first time. The gauge has also rallied for seven straight weeks, the best streak since January 2011.
Time Warner Cable Inc. surged 10 percent to a record after people with knowledge of the matter said Comcast Corp. and Charter Communications Inc. have discussed a joint bid for the company. Foot Locker Inc. rallied 4.1 percent after posting higher-than-estimated quarterly earnings. Intel Corp. lost 5.4 percent after the world’s largest maker of semiconductors said revenue will be approximately unchanged in 2014.
Yields on 10-year Treasury notes fell four basis points, or 0.04 percentage point, to 2.75 percent in New York Nov. 22. Treasuries rose as 10-year rates at the highest level in two months the day before attracted buyers.
Fed policy makers discussed creating a program to buy short-term Treasury securities to keep yields in line with their policy intentions, according to minutes of their October meeting. Such a tool could help reinforce the Fed’s commitment to keep the benchmark overnight lending rate near zero even after it starts to reduce its $ 85 billion in monthly bond purchases.
The Ifo institute’s German business climate index, based on a survey of 7,000 executives, increased to 109.3 from 107.4 in October, data Nov. 22 showed. Economists forecast a gain to 107.7, according to the median of 43 estimates in a Bloomberg survey.
West Texas Intermediate crude oil fell 0.6 percent to $ 94.84 a barrel Nov. 22, trimming the first weekly advance in seven weeks to 0.4 percent.
Oil exports from Iran will be held to about 1 million barrels a day under sanctions that remain in force after the nation and six world powers came to an agreement in Geneva, according to the White House. The sanctions have cut Iranian crude sales by 60 percent since the start of 2012, depriving the country of more than $ 80 billion in revenue, U.S. President Barack Obama’s administration said in a statement.
“I doubt the deal will have any significant price impact,” given that Iran can’t boost crude sales under the accord, Gordon Kwan, Nomura’s regional head of oil and gas research, said yesterday by e-mail from Hong Kong. “The oil market will take some time to be convinced that Iran is serious in compliance before pricing out the hefty geopolitical premium.”
Israeli Prime Minister Benjamin Netanyahu called the deal, which marks a breakthrough in relations between the U.S. and Iran, a “historic mistake.”
Iran’s currency appreciated 2.3 percent yesterday to 29,300 per dollar in Tehran, according to prices provided by five street traders in the nation’s black market. The rial lost more than half its value in the year before President Hassan Rouhani’s election in June.
Gold was little changed in early trading today at $ 1,243.45 an ounce, after falling 3.6 percent last week for the steepest weekly slump since September. The S&P GSCI Index of commodity prices gained 1.2 percent last week, a second week of gains.
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