Reply #13: Stocks Rally on China Manufacturing as Cold Snap Boosts Oil

[ozymandius]

Jan. 4 (Bloomberg) -- Stocks and commodities rose on the first trading day of 2010 as China’s manufacturing expanded at the fastest pace in more than five years and the outlook for American job losses improved. Oil gained after freezing weather hit the U.S.

The MSCI World Index of 23 developed nations’ stocks advanced 0.5 percent at 12:40 p.m. in London and futures on the Standard & Poor’s 500 Index gained 0.6 percent. The MSCI Emerging Markets Index added 0.8 percent to a 17-month high. Natural gas for February delivery gained as much as 4.6 percent and crude oil rose for an eighth day, exceeding $80 a barrel.

Manufacturing in China, which led the recovery from the first global recession since World War II, expanded by the most in five years last month, an industry report showed. The U.S. will report Jan. 8 that payrolls fell in December by the smallest amount since the recession began two years ago, according to the median forecast in a Bloomberg News survey....

U.S. Stocks

The advance in U.S. futures indicated that the S&P 500 may rise after a 1 percent decline on Dec. 31. A report due at 10 a.m. New York time may show U.S. manufacturing expanded at a faster pace in December. The Institute for Supply Management’s factory index rose to 54 from 53.6 in November, according to the median forecast of 57 economists surveyed by Bloomberg News. Readings greater than 50 signal expansion.

Payrolls probably fell by 1,000 workers last month, the fewest since the recession began in December 2007, according to a Bloomberg News survey ahead of the Labor Department report on Jan 8.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a7Z95HKPsk1A&pos=1

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See? Less Bad is the New Good. If you read any good news about job expansion - please send me a Screaming Telegram.