decades

By Michael P. Regan and Rita Nazareth March 22 (Bloomberg) — U.S. stocks rose and the dollar erased gains, helping commodities trim losses, as a rally in drugmakers overshadowed concern higher interest rates and growing government debt will stifle the economic recovery. The Standard & Poor’s 500 Index climbed 0.4 percent to 1,164.54 at 12:31 p.m. in New York, led by health-care shares after the U.S. House passed legislation to allow tens of millions of uninsured Americans to get medical coverage. The MSCI World Index of global stocks rose 0.2 percent after erasing a 0.9 percent slide. The Dollar Index slipped 0.2 percent to 80.575 after climbing 0.4 percent earlier. The S&P/GSCI Index of commodities trimmed a 2 percent slide to less than 0.1 percent. The passage of the most sweeping U.S. health-care legislation in four decades removed uncertainty surrounding the prospects for pharmaceutical and health-insurance companies under President Barack Obama ’s biggest policy initiative. The advance in U.S. stocks halted an earlier global slide triggered by India’s unexpected interest rate increase last week and an International Monetary Fund official’s prediction that government debt may hurt economic growth in developed economies. “We’re getting more clarity on health care,” said David Heupel , who helps manage $60 billion at Thrivent Financial in Minneapolis. “Some areas got hit because people just don’t like uncertainties. We’re going to get a return to fundamentals again. Some of the names look fairly inexpensive.” Health-care stocks in the S&P 500 advanced 1 percent as a group and contributed about 40 percent of the index’s advance, according to data compiled by Bloomberg. Merck & Co. and Pfizer Inc. climbed at least 1.7 percent. Health Overhaul The U.S. House passed the most sweeping health-care legislation in four decades, rewriting the rules governing medical industries and ensuring that tens of millions of uninsured will get medical coverage. The approval will remove a significant “overhang” from the industry and be viewed positively, Credit Suisse Group AG analyst Ralph Giacobbe wrote in a note today. The Stoxx Europe 600 Index declined 0.1 percent, paring a drop of as much as 1.3 percent. The MSCI Asia Pacific Index dropped 0.9 percent. Cnooc Ltd., China’s biggest offshore oil explorer, slumped 2.7 percent in Hong Kong after oil retreated as much as 2.6 percent in New York. Crude pared losses and trading down 0.2 percent to $80.49 a barrel as U.S. equities rose. Government bonds gained, with the yield on the German bund falling 4 basis points to 3.06 percent. The yield on the 10-year Treasury note slipped 3 basis points to at 3.66 percent. Debt Concern Maintaining government debt at post-crisis levels may reduce growth in advanced economies by as much as half a percentage point a year from the pace before the first global recession since World War II, John Lipsky , first deputy managing director of the IMF, said in Beijing yesterday. Greek bonds fell for a third day, with the yield on the two-year note jumping 13 basis points to 5.23 percent. National Bank of Greece SA, the nation’s biggest lender, helped lead stock declines in Athens, sinking 2.1 percent. The cost of insuring against a default on Greek government bonds rose, with credit-default swaps climbing 26 basis points to 356, according to CMA DataVision. The MSCI Emerging Markets Index dropped 0.9 percent for a third day of declines. South Korea’s Kospi Index and Taiwan’s Taiex Index fell 0.8 percent, and India’s Sensitive Index slid 1 percent. Russia’s Micex Index lost 0.3 percent and the ruble depreciated against all 17 major trading partners. Copper for delivery in three months fell 0.3 percent to $7,410 a metric ton on the London Metal Exchange, retreating for a third day. To contact the reporters on this story: Michael P. Regan in New York at Mregan12@bloomberg.net ; Rita Nazareth in New York at rnazareth@bloomberg.net .