Oct. 28 (Bloomberg) -- U.S. stocks and oil rose for a third day and the yen weakened amid bets that central banks in America and Japan will maintain monetary stimulus. European shares fell for a second day and Treasuries were little changed.
The Standard & Poor’s 500 Index added 0.2 percent to 1,763.69, above its record closing level, at 1:40 p.m. in New York. The Stoxx Europe 600 Index closed 0.2 percent lower, erasing earlier gains. West Texas Intermediate oil, which reached a four-month low last week, rose 0.6 percent to $98.47 a barrel as a drop in Libyan output fueled gains. Japan’s currency slipped 0.3 percent to 97.70 per dollar. Spanish bonds advanced for the first time in three days.
The Federal Reserve, which starts a two-day policy meeting tomorrow, will probably refrain from tapering stimulus measures until March, according to a Bloomberg survey of economists. The Bank of Japan will continue to buy bonds until its inflation target is reached, Deputy Governor Kikuo Iwata said yesterday. Apple Inc. is among 12 companies in the S&P 500 due to release earnings today, and a report showed fewer Americans than forecast signed contracts to buy previously owned homes in September.
"Investors are going to be overly focused on this Fed meeting," Scott Wren, senior equity strategist in St. Louis for Wells Fargo Advisors LLC., which oversees about $1.3 trillion, said by phone. "I suspect that when the statement is released, there’s going to be very little change to it."
Gasoline, gas oil, Brent crude and heating oil jumped at least 1.7 percent to lead gains in 11 of the 24 commodities tracked by the S&P GSCI Index, sending the gauge up 0.7 percent even as natural gas, corn, soybeans coffee and wheat fell more than 1 percent.
New York-traded oil advanced as much as 1 percent after state-run National Oil Corp. said crude production in Libya, holder of Africa’s largest reserves, declined to about 250,000 barrels a day because of labor protests.
"The Libyan production drop is the main driver and is also the reason why Brent is stronger," said Jacob Correll, a Louisville, Kentucky-based commodity analyst at energy management firm Schneider Electric Professional Services.
The yen slipped against all of its 16 major peers, weakening at least 0.3 percent against the Brazilian, New Zealand, Canadian and South Korean currencies. It dropped for a third day against the shared European currency, depreciating 0.2 percent to 134.76 yen per euro. The euro slipped 0.1 percent to $1.3791 after touching an almost two-year high of $1.3832 on Oct. 25.