Investors dumping bonds from Europe’s most indebted governments are turning to fixed-income markets in Sweden, Finland, Norway and Denmark for shelter, said Bill O’Neill, chief investment officer for Europe, the Middle East and Africa at Merrill Lynch Wealth Management.
Gold is poised to rise above $2,000 an ounce next year, while lack of clarity on demand outlook and policies in China dim prospects for industrial metals, according to Merrill Lynch Wealth Management, which oversees more than $1.8 trillion for clients.
Global stocks beat all assets for a third month in November, the longest winning streak since 2009, on signs that economic growth is accelerating. Commodities extended declines as gold fell the most since June.
European stocks gained the most in five weeks, ending the longest losing streak in a year for the Stoxx Europe 600 Index, on speculation the decline in equities has overrun the outlook for company earnings.
Hedge funds raised commodity bets in the longest bullish streak in three years as speculation that policy makers will increase economic stimulus drove prices toward the biggest monthly rally since October.