AppId is over the quota
European stocks rallied on Monday, after manufacturing in Germany and China beat forecasts. French bonds fell before debt sales this week and the euro weakened.
The Stoxx Europe 600 index closed up 1.1 percent and the DAX index in Germany surged 3 percent. The Bovespa index in Brazil increased 1.9 percent. The markets in the United States, Britain and several other countries were closed Monday in observance of the New Year’s holiday.
The price of French 10-year bonds fell for a fourth day, pushing yields higher to 3.24 percent. France plans to sell 16.9 billion euros ($21.9 billion) of debt this week. France’s CAC-40 index climbed 2 percent and benchmark indexes in Portugal and Italy increased at least 1.8 percent. The euro weakened against 13 of 16 major peers.
Gold touched the highest level in a week on reports that Iran had produced its first nuclear fuel rod, spurring investors to buy the precious metal as a haven. Spot prices gained as much as 3.2 percent to $1,613.40 an ounce in London, before trimming its gain to 0.2 percent and trading at $1,566.27.
Germany’s purchasing managers index climbed to 48.4 last month, according to Markit Economics. A manufacturing gauge for China increased to 50.3, the Beijing-based logistics federation said Sunday.
“On the first day of the year, a lot of investors, having cleaned their portfolios, have liquidity to invest,” said Arnaud Scarpaci, a fund manager at Agilis Gestion in Paris. “Germany can be seen as a safe haven because it has stronger growth than other countries. People are investing in industries with a lot of visibility, such as utilities.”
Equities and commodities last week capped their worst annual returns since the financial crisis in 2008 amid concern that Europe’s government debt crisis would weigh on global growth. The Stoxx 600 lost 11 percent in 2011, while the MSCI Asia-Pacific index slid 17 percent.
The Standard & Poor’s 500-stock index closed virtually unchanged, ending 2011 at 1,257.60, compared with its 2010 close of 1,257.64.
The direction of the S.& P. 500 in January has correctly foreshadowed whether stocks end the year higher or lower in 60 of the last 83 years, or about 72 percent of the time, according to an e-mail on Sunday from Howard Silverblatt, senior index analyst at S.& P.
German bonds declined for the first time in five days, pushing 10-year yields up to 1.91 percent. The country will auction 5 billion euros of bonds due in 2022 on Wednesday.
Mexican stocks advanced, sending the benchmark Bolsa index up 0.7 percent.
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