The Stoxx Europe 600 Index (SXXP) slipped 0.3 percent at 9:47 a.m. in London, trimming a seventh weekly advance. Futures on the Standard & Poor’s 500 Index lost 0.2 percent. The S&P GSCI gauge of commodities slid 0.4 percent and oil in New York declined 0.4 percent. The euro slipped 0.2 percent versus the dollar and yen and German two-year note yields were less than zero for the 11th consecutive day before European finance ministers hold a conference call to set terms for Spain’s bailout. Thirty-year Treasury yields fell two basis points to 2.59 percent
“It’s natural to see the market take a breather after such a positive week for stocks,” said Giovanni Leonardo, a fund manager at Swiss & Global Asset Management Ltd. in Zurich, where he helps manage the equivalent of about $7.1 billion. “A better-than-expected start into the reporting seasons helped improve investor sentiment. Nevertheless, the situation remains fragile as the political decisions due to be taken in the coming months could heavily impact investor behavior.”
China won’t relax property control policies and will instead seek to keep a “firm grip” on the real estate market to prevent a rebound in housing prices, Xinhua News Agency said. General Electric Co., the world’s biggest maker of jet engines, power generation equipment and health-care imaging devices, will release its results today. Earnings at U.S. companies exceeded analyst estimates at 71 percent of the 110 S&P 500 companies that have reported quarterly results so far, according to data compiled by Bloomberg.
Vodafone Drops
The Stoxx 600’s decline pared this week’s advance to 2 percent. Its seventh weekly advance is the longest run since January 2006. Vodafone Group Plc (VOD), Europe’s largest mobile-phone company, slid 2.1 percent after posting quarterly service revenue that trailed analysts’ estimates.
The S&P 500 has risen for the past three days, bringing this week’s increase to 1.5 percent. Microsoft Corp. (MSFT) climbed 1.9 percent in German trading after reporting a bigger gain in multiyear software deals than analysts predicted last quarter. Google Inc. rallied 2.6 percent after the owner of the world’s most popular search engine said revenue surged 35 percent.
Commodities retreated for the first time in eight days. Oil was down to $91.91 a barrel and zinc fell 1.1 percent. Corn was the biggest gainer, rising 1.3 percent to $7.8825 a bushel.
The euro slid to $1.2257 per dollar and 96.35 yen, heading for a fourth weekly drop against its Japanese counterpart.
The yield on 10-year Treasuries dropped two basis points to 2.59 percent. Reports yesterday showed U.S. initial jobless claims were higher than estimated and measures of manufacturing activity and sales of existing homes missed estimates.
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