An increase in U.S. stock-index futures pointed to a rebound in the Standard & Poor’s 500 Index after a three-day drop, with European shares erasing losses amid a rally in mining companies. Crude oil erased intraday gains.
The Stoxx Europe 600 Index recovered as Glencore Plc led a gauge of miners to the biggest gain on the equity benchmark. Currencies of commodity-producing nations strengthened, with Australia’s dollar leading gains after an unexpected pickup in employment. The euro, Swedish krona and rand weakened against the dollar. The U.K. pound traded near a two-week high before a Bank of England policy decision. The cost of insuring corporate debt rose for a third day and reached a seven-week high.
The Stoxx 600 added 0.2 percent at 10:38 a.m. in London, after earlier falling as much as 0.9 percent. The euro declined against most of its 16 major peers as French economic data provided a timely reminder of the challenges facing the region’s policy makers. South Africa’s rand fell 0.3 percent, reversing earlier gains. It sank to a record low on Wednesday as President Jacob Zuma fired the nation’s finance minister. West Texas Intermediate fell 0.2 percent to $ 37.10 a barrel.
U.S. stocks fluctuated as energy shares erased a drop along with oil, while gains among consumer companies offset declines in Allergan Plc and Pfizer Inc. amid their record $ 160 billion merger deal.
Tyson Foods Inc. gained 10 percent after boosting its dividend and its profit outlook was better than some analysts expected. Chipotle Mexican Grill Inc. rebounded 5 percent after tumbling 12 percent Friday as a food-poisoning outbreak linked to its restaurants spread to six states. Mallinckrodt Plc surged 8.4 percent after posting earnings that topped analysts’ estimates. Allergan and Pfizer slipped more than 1.9 percent.
The Standard & Poor’s 500 Index gained 0.2 percent to 2,093.01 at 12:56 p.m. in New York, after rising 3.3 percent last week, the most since last December. The Dow Jones Industrial Average added 3.68 points to 17,827.49. The Nasdaq Composite Index advanced 0.3 percent, while the Russell 2000 Index increased 0.8 percent, bolstered by gains in health-care, energy and consumer discretionary shares.
The main U.S. equity gauge surged last week after Federal Reserve officials signaled the economy is strong enough to withstand the first rate increase since 2006, and investors grew more comfortable with the notion that borrowing costs may soon be higher. Stocks have gained in seven of the past eight weeks, boosted by raw-material, industrial and technology shares, taking the S&P 500 to within 2 percent of a record set in May.