By Justin Carrigan Feb. 9 (Bloomberg) — Stocks rallied, with emerging-market equities recovering from the worst three-day slide in a year, and the euro and commodities gained on speculation Greece will get European help to tackle its budget deficit. The Standard & Poor’s 500 Index rose 1.2 percent at 9:42 a.m. in New York. The MSCI Emerging Markets Index increased 1.6 percent after falling 6.1 percent in the past three sessions. Greece’s ASE Index climbed 5 percent, rebounding from four days of losses. The euro strengthened 0.7 percent against the dollar, snapping four days of declines, and ended a three-day drop against the yen. Oil, copper and aluminum increased at least 0.9 percent to lead gains in commodities. European Union leaders will discuss Greece’s plans to reduce the region’s biggest deficit when they meet Feb. 11, and European Central Bank President Jean-Claude Trichet ’s decision to leave a meeting of policy makers in Sydney one day early fanned speculation that officials will agree on aid. European Commission President Jose Barroso said investors would be wrong to bet against the euro. “The markets are smelling a deal for Greece, and for that reason, we’re seeing some stabilization,” said Robin Marshall , director of fixed income in London at Smith & Williamson Investment Management, which oversees about $20 billion. “It’s hard to see there not being one, given the potential fallout and contagion effect.” The S&P 500 erased yesterday’s 0.9 percent drop. The Dow Jones Industrial Average rallied above 10,000 after closing below that level for the first time since November yesterday on concern deteriorating European government finances will hurt economies elsewhere. Global Rebound The MSCI World Index of 23 developed nations’ stocks increased 0.9 percent, ending four days of losses. Europe’s Dow Jones Stoxx 600 Index climbed 0.5 percent. Swatch Group AG rallied 6.1 percent in Zurich as the maker of Omegas posted better-than-estimated earnings. The 16-nation European currency climbed as much as 0.9 percent against the dollar, its biggest gain since Jan. 11. The euro appreciated 0.9 percent versus the yen and 0.4 percent compared with the British pound. Greek banks led the gains in European stocks as National Bank of Greece SA, the nation’s biggest lender, surged 7.1 percent in Athens, while Alpha Bank AE jumped 9.1 percent. The 10-year Greek government bond rose, with the yield falling 34 basis points to 6.43 percent. Taiwan Rallies Taiwan shares led the advance among major emerging markets, with the benchmark Taiex index climbing 2 percent. Developing- nation currencies strengthened, led by a 0.7 percent advance in South Korea’s won against the dollar and a 0.8 percent increase in Poland’s zloty versus the euro. Gains in Europe were limited as Unibail-Rodamco SE, Europe’s largest shopping-center owner, dropped 5 percent in Paris after saying the recession curbed growth in rental income. SAS AB plummeted 22 percent in Stockholm as the owner of the Nordic region’s largest airline reported a loss. The MSCI Asia Pacific Index increased 0.3 percent, gaining for the first time in four days. Nissan Motor Co. rose 2.4 percent after predicting a return to profit this fiscal year, scrapping an earlier loss estimate. Treasuries fell for the first time in four days as the government prepared to sell record-tying amounts of three-, 10- and 30-year bonds this week, starting with $40 billion of 2013 notes today. The yield on the 10-year note rose 4 basis points to 3.60 percent. Copper advanced 1.1 percent to $6,520 a metric ton in London. Gold for immediate delivery added 1 percent to $1,073.80 an ounce. Crude oil advanced 0.9 percent to $72.56 a barrel in New York trading. Orange-juice futures surged the most in more than a week, gaining 2 percent to $1.37 a pound, after the U.S. Department of Agriculture cut its forecast for Florida citrus crops following a damaging cold snap last month. White sugar rose for a second day in London on speculation a global production shortfall may persist. To contact the reporter for this story: Justin Carrigan in London at jcarrigan@bloomberg.net
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Stocks Rally as Euro Gains on Speculation Greece to Get EU Help on Deficit
