European stocks rise for a sixth day

European stocks rose for a sixth day and the dollar strengthened to a two-week high versus the yen before data on the US economy. The ruble strengthened for a third day as oil rose.

The Stoxx Europe 600 Index increased 0.3 percent at 7:46 a.m. in New York, heading for its longest winning streak since April. Futures on the Standard and Poor’s 500 rose 0.1 per cent after US indexes closed at records.

The US currency climbed for a fifth day against the yen as the Bloomberg Dollar Spot Index held near a five-year high. The ruble strengthened 2.8 per cent as oil advanced in New York and London.

Reports today may show the US economy expanded more than previously estimated last quarter, orders for durable goods rose in November and the pace of new home sales increased.

A final reading on UK gross domestic product showed a seventh quarter of expansion. The US publishes oil inventories tomorrow.

“Part of the rebound we’re now witnessing has to do with the realization that the selloff was overdone,” David Wartenweiler, chief investment officer at Habib Bank, said by telephone from Zurich.

“The US economy is really on track to continue to grow at a healthy pace.”

The Stoxx 600 is heading for its biggest six-day gain in three years and has regained 6 percent from its December 15 low.

The volume of shares on the gauge changing hands was 36 per cent below the 30-day average, data compiled Bloomberg show.

OC Oerlikon added 2.9 per cent after the Swiss manufacturer of textile machinery and car gears said it has agreed to sell its Advanced Technologies unit. SandP 500 Futures on the SandP 500 expiring in March rose after the index climbed to a record yesterday, erasing this month’s losses. It’s now up 0.5 per cent for December and 12 per cent for the year.

The MSCI All-Country World Index fell less than 0.1 per cent after its biggest four-day gain in more than two years.

Economists surveyed by Bloomberg predict annualized growth in the US economy will be revised up to 4.3 per cent for last quarter, from a previous estimate of 3.9 percent.

Orders for durable goods expanded 3 per cent in November on the month, compared with a revised 0.3 per cent increase in October, according to a separate survey before a report due today.

West Texas Intermediate crude rose 1.6 per cent to $56.14 a barrel, after falling 3.3 per cent yesterday.

Prices are down 43 per cent this year. Brent oil added 1.3 per cent to $60.88 a barrel after slipping 2.1 per cent last session.

Iraq plans to boost production to 4 million barrels a day next year as OPEC refuses to cede market position, Oil Minister Adel Abdul Mahdi said in an interview yesterday.

OPEC members Saudi Arabia and the United Arab Emirates have pledged to maintain output, while Qatar’s energy minister has said the market is oversupplied by 2 million barrels a day.

The 12-member group is responsible for about 40 per cent of the world’s supply.

The ruble strengthened for a third day, advancing to 54.2675 a dollar on speculation the government ordered companies to convert more of their foreign revenue into rubles amid efforts to recover from the nation’s worst currency crisis since 1998.

Bloomberg