Bloomberg Business
-Commodities: Brent rose 2.2 percent to $48.88 a barrel at 8:35 a.m. in New York, reaching the highest since November, after Friday’s 0.5 percent loss. China’s refineries processed crude at record rates in April, helping ease a supply glut as the number of active rigs in the U.S. declines. West Texas Intermediate climbed 2.2 percent to $47.23. Goldman Sachs raised its oil-price forecast for the second half to $50, from a March estimate of $45. Aluminum rose 0.3 percent in London after weekend data showed China’s primary output of the metal slipped 1.2 percent in April from a year earlier. Gold added 0.9 percent after data showed holdings in exchange-traded funds increased to the highest since 2013. Silver gained 1.2 percent.
-Stocks: The Stoxx Europe 600 Index declined 0.4 percent, falling for a third time in four days. German and Swiss markets were among those shut, and volume of shares changing hands was about 47 percent lower than the 30-day average. The MSCI Emerging Markets Index added 0.1 percent after falling as much as 0.4 percent on Monday. Benchmark gauges in Russia, Poland, South Africa and the Philippines climbed at least 1 percent. “The firmer oil price is helping emerging-market equities today despite the weaker China data over the weekend,” said Michael Wang, a strategist at hedge fund Amiya Capital LLP in London, who favors Indian, Mexican and South Korean stocks. Futures on the S&P 500 Index expiring next month were little changed after the gauge completed a third weekly decline, its longest streak since January. A report by the New York Federal Reserve showed an index that tracks manufacturing activity in the state declined unexpectedly.
-Currencies: Russia’s ruble climbed 0.8 percent against the dollar as oil advanced, while Australia’s dollar strengthened 0.4 percent against its U.S. counterpart. The Bloomberg Dollar Spot Index held near its highest close since March as the greenback gained 0.3 percent versus the Japanese yen. U.S. retail sales climbed in April by the most in 13 months and a gauge of consumer confidence surged in early May to an almost one-year high, reports showed Friday.
-Bonds: Ireland’s 10-year year bond yield declined one basis points to 0.8 percent, after falling six basis points on Friday. Moody’s raised the rating to A3 from Baa1 with a positive outlook, the company said Saturday in a statement. Treasuries were little changed, with the yield difference between two- and 10-year debt at the narrowest since 2007, based on closing prices. The spread between the securities was at 94 basis points, compared with 122 basis points at the end of last year.
CNN Money
– Monday market overview: U.S. stock futures are not making any major moves ahead of the open following a third straight week of losses on the key indexes. Last week the Dow Jones industrial average fell 1.2%, the S&P 500 slipped 0.5% and the Nasdaq dropped 0.4%. «The last time the [Dow] registered three consecutive weekly losses was at the start of the year. Needless to say, the damage was far more severe then,» said Mike O’Rourke, chief market strategist at JonesTrading. The majority of European markets are dropping in early trading, while most Asian markets ended the day with gains.
– Potential market mover — Yahoo: Shares in Yahoo (YHOO, Tech30) could pop at the open as it emerged over the weekend that an investing group backed by Warren Buffett is among the bidders for Yahoo’s core Internet business. A Buffett-backed bid could challenge Verizon’s (VZ, Tech30) status as the most likely buyer of the business. Verizon has been expanding into digital content and advertising and last year bought AOL for more than $4 billion.
– Crude reality: Crude oil futures are trading around $47 per barrel. The last time oil traded at this level was just over six months ago. Prices are rising Monday in reaction to a Goldman Sachs (GS) report that says oversupply in the market has come to an end due to «sustained strong demand as well as sharply declining production.» Crude prices have been recovering since hitting a historic low around $26 per barrel in mid-February.
– Warren Buffett buys stake in Apple:Berkshire Hathaway (BRKA), the conglomerate run by Buffett, disclosed in a regulatory filing Monday that it purchased more than 9.8 million shares in Apple (AAPL, Tech30) during the first quarter. It marks Berkshire’s first investment in Apple. Berkshire acquired its position at an average price of about $109 a share. But the value of that investment, originally worth around $1.1 billion, has already dropped significantly. Investors have been worried about slowing demand for iPhones after Apple reported disappointing earnings last month. Apple’s stock price has since fallen to just above $90, meaning that Berkshire’s stake in Apple is now worth about $888 million. The Apple purchase is the second big tech investment by Berkshire, which has been steadily adding to its stake in IBM (IBM, Tech30) during the past few years. Berkshire is also backing a takeover bid for the core assets of struggling Internet company Yahoo (YHOO, Tech30).