Bloomberg U.S. Markets Wrap: Commodities, Stocks Gain on Economic Outlook

May 1 (Bloomberg) -- Commodities jumped the most in four weeks, led by grains and energy, as signs of improving economic conditions boosted speculation that demand will strengthen for raw materials. Equities also climbed.

The Reuters/Jefferies CRB Index surged 3 percent, the most since April 2. Wheat soared 6.2 percent, the most in five months. Crude oil climbed 4.1 percent.

U.S. consumer sentiment last month unexpectedly advanced to the highest level since the credit crisis intensified in September, an industry report showed today. Manufacturing in China expanded for a second straight month in April.

“More sentiment change toward the economy has been driving these prices,” said Evan Smith, who helps manage $2 billion at U.S. Global Investors in San Antonio. “The manufacturing numbers have been a catalyst for someone who’s been sitting on cash to start putting money to work in these markets again.”

The CRB index gained 6.65 to 299.04. Sixteen of 19 components in the gauge climbed. The UBS Bloomberg Constant Maturity Commodity Index rose 3.5 percent to 964.9.

The gain in equities capped a weekly advance. Consumer confidence and manufacturing jumped to their highest levels since September, signaling the worst of the recession may be over. more...