di Nick Gentle e Abigail Moses
The dollar extended its longest winning streak in more than two years before a report that may show U.S. hiring increased, while platinum slumped to a five-year low. European stocks swung between gains and losses and Greek bonds led advances in higher-yielding government debt.
The Bloomberg Dollar Spot Index climbed 0.2 percent at 10:12 a.m. in London, adding to its best quarter in six years. The Stoxx Europe 600 Index and Standard & Poor’s 500 Index futures (SPX) were little changed. Platinum fell 1.6 percent and corn declined 0.7 percent, while Greek 10-yearyields dropped 38 basis points to 6.26 percent.
U.S. companies added 205,000 workers in September, the first increase in three months, according to economists surveyed by Bloomberg News, fueling speculation that Federal Reserve may raise interest rates sooner than anticipated. Euro-area factories cut prices in September by the most in more than a year and German manufacturing shrank, underlining the mounting challenge facing policy makers.
“Everything seems to be dollar positive,” said Daragh Maher, a foreign-exchange strategist at HSBC Holdings Plc in London. “Not only is the market happy to debate how swiftly the first U.S. rate hike might arrive, but data disappointments elsewhere are driving a dovish mood for other currencies.”
Dollar StrengthenedThe dollar strengthened against all but two of its 16 major counterparts. Its biggest gain came versus the South Korean won, which dropped amid concern authorities will take steps to weaken the currency. Australia’s dollar sank 0.5 percent and touched the lowest level since January after retail sales grew less than economists forecast. The yen weakened through 110 per dollar for the first time since August 2008 and the euro approached a two-year low.
The U.S. currency strengthened 6.7 percent last quarter, the biggest advance since the third quarter of 2008, based on the Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers.
An ADP Research Institute report may show that U.S. companies added more workers after hiring 204,000 in August. Separate data may show manufacturing in the world’s largest economy continued to expand last month.
Euro-area manufacturing expanded at the slowest pace in 14 months, according to today’sPurchasing Managers’ Indexes from Markit Economics. The gauge stood at 50.3 in September, just above the 50 mark that divides expansion from contraction, and below a preliminary estimate of 50.5.
Automakers RallyThe Stoxx 600 was little changed today after climbing 0.4 percent last quarter, a fifth increase and the longest stretch since 2006. Automakers rallied the most among 19 industry groups today. Peugeot SA (UG) climbed 2.4 percent as September car registrations rose in France. Bayerische Motoren Werke AG advanced 1.5 percent after Morgan Stanley upgraded it.
Adidas AG rose 3.7 percent after the world’s second-largest sporting-goods maker said it will start a multi-year shareholder return plan of as much as 1.5 billion euros ($1.9 billion).
Orange SA retreated 2.8 percent as Bpifrance is selling a stake in the phone company for as much as 595 million euros. Neopost SA (NEO) lost 6.3 percent after the French manufacturer of mailing and shipping equipment reported a decline in first-quarter profit.
The volume of Stoxx 600 shares changing hands today was 12 percent greater than the 30-day average, according to data compiled by Bloomberg.
Futures on the S&P 500 expiring in December slipped less than 0.1 percent today after the index trimmed a seventh quarterly gain, the longest streak since 1998.
EBay DropsEBay Inc. dropped 1.9 percent in German trading after JPMorgan Chase & Co. and Jefferies Group LLC lowered their outlooks for the stock.
Emerging market stocks fell for a fifth day and currencies slid amid prospects for higher U.S. interest rates. The MSCI Emerging Markets Index fell 0.4 percent to the lowest level in almost five months.
Pro-democracy protests entered a sixth day in Hong Kong with markets in the city and China closed for holidays. The demonstrations swelled on the eve of a two-day break that may bring record numbers to rallies spreading throughout Hong Kong as organizers pressed demands for free elections.
The ruble weakened for a fifth day, approaching the level where the central bank intervenes to slow declines. The currency yesterday temporarily slipped beyond the threshold after officials said policy makers are weighing capital controls if the flow of money out of the country intensifies. The ruble recovered most losses after the central bank said it wasn’t considering imposing the limits.
Greek BondsGreek bonds rose for the first time in four days after the Financial Times reported that European Central Bank President Mario Draghi was pushing the institution to purchase Greek and Cypriot bank loans with ratings below investment grade.
Portugal’s 10-year yield fell six basis points to 3.10 percent and Spain’s dropped three basis points to 2.11 percent.
The Bloomberg Commodity Index (BCOM) declined 0.1 percent, after slumping 12 percent in the third quarter, the most since 2008. Platinum, used in automobile catalytic converters, fell as much as 1.7 percent to $1,278.88 an ounce, the lowest since Oct. 5, 2009, and corn futures declined to the lowest since Sept. 22, 2009. West Texas Intermediate oil climbed 0.3 percent to $91.44 a barrel, after tumbling 3.6 percent yesterday, the biggest drop since November 2012.
To contact the reporters on this story: Nick Gentle in Hong Kong at firstname.lastname@example.org; Abigail Moses in London at email@example.com
To contact the editors responsible for this story: Stuart Wallace at firstname.lastname@example.orgMichael Shanahan