Stocks Fall as Gold, Wheat Climb on Ukraine; Yen Advances

New York (May 5)  Stocks fell while gold climbed and wheat rose to a 13-month high after violence spread in Ukraine and a gauge of Chinese manufacturing contracted for a fourth month. Treasury 10-year notes rose for a fifth day and the yen strengthened against 15 of its 16 major counterparts.

The Stoxx Europe 600 Index slid 0.9 percent at 7:05 a.m. in New York. An index of Chinese shares in Hong Kong dropped to the lowest level since March. Standard & Poor’s 500 Index futures slipped 0.4 percent. Gold jumped 0.9 percent to $1,311.12 an ounce and wheat gained 1.5 percent. Japan’s currency advanced 0.2 percent to 102.01 per dollar. The yield on 10-year Treasuries dropped to a three-month low and the rate on Portugal’s five-year note approached a record low.

Ukraine pressed ahead with military operations to dislodge rebels from its eastern industrial heartland after violence spread to the Black Sea gateway of Odessa. The China purchasing managers’ index from HSBC Holdings Plc and Markit Economics Ltd. was 48.1 in April, lower than the preliminary reading of 48.3 and missing the 48.4 projected by economists.

“The European markets are impacted by the negative reading from the Chinese PMI numbers that indicate a further deterioration of growth into the second quarter,” said Kai Fachinger, who oversees about $700 million as a money manager at RobecoSAM AG in Zurich. “The rising tension in Ukraine is adding to investors’ reduced risk appetite.”

Technology shares led declines in the Stoxx 600, with trading volumes 60 percent less than the 30-day average, according to data compiled by Bloomberg. Markets in the U.K. were closed today. There was also no trading in Japan and South Korea due to holidays.