As reported by Bloomberg’s Shiyin Chen and Ian C. Sayson: stock
Stocks advanced, extending the longest rally since January for the Standard & Poor’s 500 Index, after U.S. forces killed Osama bin Laden. Silver sank as CME Group Inc. raised the amount of cash needed for speculative positions.
The S&P 500 advanced 0.3 percent at 10:10 a.m. in New York for a fifth straight gain, while the Stoxx Europe 600 Index climbed for an eighth day. The Dollar Index was little changed after falling 3.4 percent during a nine-day losing streak, its longest in four years. South Korea’s won rose against 15 of its 16 most-traded peers. Oil reversed early losses. Silver futures plunged as much as 13 percent. Two-year Treasury yields climbed one basis point.
Bin Laden, who helped found al-Qaeda, was killed in a U.S. operation in Pakistan, President Barack Obama said in a televised address last night. Economic data showed U.S. and European manufacturing growth topped estimates and South Korean exports climbed to a record, bolstering confidence in the global economic recovery.
“The immediate consequences are, as we are seeing, a positive repricing of the U.S and its markets, and a slight derating of commodities,” Jim O’Neill, chairman of Goldman Sachs Asset Management in London, said in an e-mail. “It might reduce some of the built-up equity risk premia that has been present since 2001. Beyond this immediate reaction, markets need to be careful as bin Laden has possibly not been the single biggest security threat directly for many years, and those who will regard him as a martyr won’t give up as a result of his killing.”