“European stocks rebounded from the biggest weekly drop in five months and Italian note yields slipped to a record as the country elected a president and the Group of 20 nations offered no opposition to Japan’s stimulus policies. The yen weakened while gold rose for a fifth day.
The Stoxx Europe 600 Index (SXXP) increased 0.8 percent at 7:25 a.m. in New York as UniCredit SpA, Italy’s biggest bank, advanced 4.5 percent. Standard & Poor’s 500 Index futures added 0.5 percent. Italy’s two-year note yield fell as much as 13 basis points to 1.208 percent. Japan’s currency depreciated for a fifth straight day, slipping 0.2 percent to 99.72 per dollar. Gold jumped 2.2 percent.
President Giorgio Napolitano will be sworn in for a second seven-year term today and could begin consultations on a new government as soon as tomorrow. Bank of Japan Governor Haruhiko Kuroda said he was emboldened to press ahead with policy that includes buying 7 trillion yen ($70.1 billion) of bonds a month after the G-20 backed stimulus efforts. European Central Bank Governing Council member Klaas Knot said yesterday data for the 17-nation currency bloc show that economic risks persist.
“This morning we have a little bit of relief from the Italian situation,” said Allan von Mehren, chief analyst at Danske Bank A/S in Copenhagen. “Maybe the Napolitano re- election is what it will take to get a more stable political situation. We’ve seen a little bit softer U.S. housing data recently but overall the trend is for structural improvement.”
Four shares gained for every one that declined as the Stoxx 600 rebounded from last week’s 2.5 percent slide. UniCredit and Banco Popolare SC led a rally in Italian banks, advancing more than 4 percent. Delhaize Group SA (DELB) climbed 12 percent to the highest level since November 2011 after the Brussels-based retailer reported earnings that beat analyst estimates….”
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