Commodities Higher After China PMI

Industrial metals led a gauge of commodities toward its longest streak of gains in 3 1/2 years and the Autralian dollar rallied after a Chinese factory gauge unexpectedly signaled expansion. U.S. equity-index futures rose, while oil climbed as Iraqi insurgents seized border posts.

The S&P GSCI Spot Index of commodities added 0.5 percent by 7:43 a.m. in London, climbing an eighth day, the longest streak since November 2010. Copper advanced 0.8 percent. The so-called Aussie climbed to a two-month high versus the greenback, followed by the New Zealand and Canadian dollars. Standard & Poor’s 500 Index futures added 0.3 percent and contracts on the Euro Stoxx 50 Index were little changed. Oil in New York and London extended last week’s rally.

China’s factory activity is increasing for the first time since December, with a preliminary purchasing manager’s index rising to 50.8, HSBC Holdings Plc and Markit Ltd. said. A level below 50 signals contraction. A similar gauge in Japan showed faster-than-estimated growth, with measures for the U.S., and the euro area to follow. Fighters from an al-Qaeda breakaway group seized all Iraq’s border crossings with Jordan and Syria.

Bloomberg

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