By Craig Trudell March 10 (Bloomberg) — Investor confidence returned to stocks from New York to Paris to Tokyo on growing signs that the budget crisis in Greece won’t derail the global economy. Sentiment improved this month in 8 of 10 nations tracked by the Bloomberg Professional Confidence Survey. The measure for the Standard & Poor’s 500 Index jumped 34 percent to 47.80, the third-biggest advance since the survey began in November 2007. Responses from 1,401 Bloomberg users were gathered March 1-5 as the MSCI World Index gained 3.3 percent, its biggest weekly climb in five months. Stock markets rebounded after the biggest losses in a year between Jan. 19 and Feb. 8, as government reports showed fewer- than-estimated job cuts and higher consumer spending in the U.S., the world’s largest economy. European leaders pledged more support for Greece as the government agreed to cut its deficit, the biggest in the region, by 4.8 billion euros ($6.5 billion). “There’s enough momentum to push the stock market to a new high,” said James Paulsen , who helps oversee about $375 billion as chief investment strategist at Wells Capital Management in Minneapolis. The MSCI World Index rallied 7.5 percent through yesterday after falling to a five-month low a month ago. The measure of stocks in 23 developed nations had retreated 9.2 percent in three weeks as investors speculated that Greece, Spain and Portugal will struggle to control budget deficits and U.S. President Barack Obama proposed limiting risk taking at banks. Last Month’s Slump Sentiment toward U.S. stocks slumped 34 percent to 35.62 last month amid the S&P 500’s three-week retreat of 8.1 percent. Readings greater than 50 mean investors forecast gains for their nation’s benchmark stock index in the next six months. The U.S. Labor Department said March 5 that payrolls dropped by 36,000 in February, half the median forecast of 82 economists surveyed by Bloomberg, as manufacturers added workers for a second straight month. Consumer spending increased 0.5 percent in January, the fourth consecutive gain, the Commerce Department said March 1. The sentiment measure for France jumped 18 percent, the second-biggest increase behind the U.S., to 62.50. The CAC 40 Index gained 7.4 percent through yesterday since Feb. 25, the day before German lawmakers said they may buy Greek bonds. The European Union is developing a contingency rescue plan for Greece to be funded by its member governments, according to two people briefed by an EU official. Weathering the Storm “Markets seem to have weathered the Greece storm,” said Fernando Espinosa , a money manager at Interbrokers Espanola de Valores in Barcelona who took part in the survey. His firm oversees 40 million euros. “Many of the problems are still there but are abating.” Switzerland’s confidence index rose 8 percent to 54.26, and Spain’s gained 3.9 percent to 36.72. The measure for Italy climbed 5 percent to 58.33. It has exceeded 50 for eight straight months, longer than every other European nation. The FTSE MIB Index has fallen 3.8 percent in 2010 after advancing 19 percent last year. The Bloomberg indexes for shares traded in Germany and the U.K. dropped for a second consecutive month, falling 14 percent to 43.33 and 7.6 percent to 41.33, respectively. Japan’s confidence measure rose 7.7 percent to 54.25 after the Nikkei 225 Stock Average fell in January and February. Investors in Mexico, who have been bullish 12 straight months, sent the nation’s sentiment index up 6.3 percent to 64.71. Brazil’s index added 1.4 percent to 69.50. While that was the smallest increase among the 10 nations, it was the highest reading in the survey. To contact the reporter on this story: Craig Trudell in New York at ctrudell1@bloomberg.net .
Original post:
Investors Turn Bullish on Stocks Worldwide as Concern About Greece Wanes
