Stocks Advance Amid Takeover Deals, Earnings; Treasuries Decline
- B/E Aerospace jumps on M&A news; AT&T, TD Ameritrade slump
- Oil falls as Iraq seeks exemption from OPEC output cuts
De Grauwe: ECB Strategy Seems to Work, but Remains Timid
Photographer: Jim Dyson/Getty ImagesStocks advanced as a flurry of deals spurred optimism in equity markets amid earnings reports. Treasuries dropped as economic data bolstered the case for higher U.S. interest rates this year.
The MSCI All Country World Index extended last week’s gains after companies from Rockwell Collins Inc. to TD Ameritrade Holding Corp. announced takeovers, and T-Mobile US Inc. surged on better-than-estimated results. U.S. government debt fell after a manufacturing gauge climbed to a one-year high, while Spanish and Portuguese bonds rose as political and economic risks across the euro region diminished. The offshore yuan slid to a record low as Chinese policy makers signaled they are willing to allow greater currency declines. Oil sank as Iraq threatened to derail the OPEC’s plan to stabilize crude markets.