STOCK MARKET WATCH -- Thursday, 15 November 2012

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10. European Stocks Drop; Yen Weakens to Six-Month Low

http://www.bloomberg.com/news/2012-11-15/european-stocks-drop-yen-weakens-to-six-month-low.html

The yen slumped to its weakest level in six months on speculation Japan’s opposition will win elections next month and advocate unlimited stimulus. European stocks fell to a two-month low, while U.S. index (SENSEX) futures advanced and Brent crude rose for a second day.

The yen depreciated at least 0.7 percent against all 16 of its major peers at 6:34 a.m. in New York. The Stoxx Europe 600 Index (SXXP) dropped 0.6 percent. Standard & Poor’s 500 Index futures rose 0.3 percent after the U.S. gauge sank to the lowest level in more than three months yesterday. Emerging-market stocks fell for a sixth day. Brent for December settlement climbed 0.3 percent to $109.93 a barrel.

Shinzo Abe, who polls show will become Japan’s premier after the election, called on the central bank to intensify measures to counter deflation and the strength of the currency. Israel and Palestinian militants in the Gaza Strip exchanged air fire amid violence sparked by the killing of Hamas’s military leader. A U.S. report may show the cost of living increased in October at the slowest pace in three months.

“A government led by the Liberal Democratic Party is expected to win,” said Mitsushige Akino, who oversees about $600 million at Ichiyoshi Investment Management Co. in Tokyo. “Investors believe that will add pressure on the Bank of Japan to ease policy, and the government will adopt strong policies to get the economy out of deflation.”