Stocks, Commodities Rise After G-8 Statement on Global Growth

Stocks rose, preventing the fourth straight weekly loss for the MSCI All-Country World Index, and commodities gained after Group of Eight leaders said the global economy is strengthening. The dollar fell.
The MSCI index added 0.9 percent at 3 p.m. in New York, giving the gauge a 0.2 percent advance since May 20. The Standard & Poor’s 500 Index climbed 0.3 percent. The S&P GSCI index of 24 commodities increased 0.5 percent as natural gas, copper and silver surged 1.2 percent or more. The dollar slid against all 16 major peers. The Swiss franc rose to records against the euro, pound and U.S. currency.

The strengthening world economy will pave the way for reductions in debt, G-8 leaders said. Europe vowed to fight its fiscal woes with “determination,” while President Barack Obama promised a “clear and credible” U.S. deficit-reduction strategy. Equities gained even after consumer spending in the U.S. climbed less than forecast and sales of previously owned American home plunged 12 times more than projected.
(...) By Stephen Kirkland and Rita Nazareth

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