Dollar Rises, Treasuries Slip on Policy Bets; U.S. Shares Mixed

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Treasuries fell and the dollar rallied versus the euro on speculation U.S. interest rates will rise while European stimulus continues. Stocks in the euro region jumped, while American shares fluctuated near records amid optimism over a Greek debt deal.

The dollar surged 1.5 percent versus the euro at 3:33 p.m. in New York, as the common currency weakened a third day. The yield on 10-year Treasury notes topped 2.40 percent. The Standard & Poor’s 500 Index swung between gains and losses about half a percentage point below a record, while the Stoxx Europe 600 Index rallied 1.2 percent to cap the best two-day gain since January.

Greece’s Prime Minister has to muster support from his coalition for a plan that aims to stave off the country’s default amid signs of progress on debt talks. The dollar strengthened on speculation the European Central Bank will maintain its bond buying, while the Federal Reserve moves closer to tightening. America’s housing market is starting to heat up and provide some pep for an economy held back by lukewarm manufacturing.

The S&P 500 is coming off its best week since April, climbing 0.8 percent after Federal Reserve Chair Janet Yellen signaled the central bank will take a gradual approach to raising U.S. interest rates.

Source: Bloomberg

Gold Back Out of Favor With Fed in Focus as Greek Deal Nears

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Gold futures fell for the third straight session, falling out of favor with investors as attention shifts away from Greece and back to the outlook for higher U.S. interest rates.

Federal Reserve Governor Jerome Powell suggested Tuesday that rates may rise as soon as September as the economy gains traction. Gold last week posted the biggest advance in a month after Fed officials indicated that monetary tightening will happen at a slow pace, while Greece faced an impasse with its creditors.

The metal’s rally is proving to be short lived. Mounting speculation that Greece will soon reach a deal to avoid default is cutting demand for haven assets. At the same time, signs of improving U.S. economic growth are reigniting concern that the Fed will raise rates soon, boosting the dollar. Higher rates curb gold’s allure because the commodity doesn’t pay interest or give returns like other assets such as bonds and equities.

Gold futures for August delivery declined 0.6 percent to settle at $1,176.60 an ounce at 1:37 p.m. on the Comex in New York. The three-session slump was longest since June 5.

Source: Bloomberg

U.S. Stocks Gain as Investors Assess Rate Timing, Greece Talks

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U.S. stocks rose, with the Standard & Poor’s 500 Index near a record, as investors weighed economic data for clues on the timing of higher interest rates amid optimism that a deal on Greek aid is within reach.

The S&P 500 Index climbed 0.1 percent to 2,124.31 at 4 p.m. in New York, after earlier rising within three points of its record close. The Nasdaq Composite Index increased 0.1 percent to an all-time high for a second day.

The S&P 500 had its biggest weekly gain since April in the period ended Friday after the Federal Reserve signaled it won’t be raising rates quickly as officials hold out for more decisive evidence of an economic rebound. Three rounds of Fed bond purchases and near-zero interest rates helped the benchmark more than triple during the six-year bull market.

Fed Governor Jerome Powell said today the chances are about 50-50 that the U.S. economy will improve enough for the central bank to raise interest rates in September, as the job market strengthens and signs of wage growth emerge.

Source : Bloomberg

U.S. Stocks Little Changed as Investors Weigh Data, Greek Talks

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U.S. stocks were little changed, after the Standard & Poor’s 500 Index rose near a record, as investors weighed economic data for clues on the timing of higher interest rates and watched for progress in Greece’s debt talks.

Semiconductors reversed Monday’s gains as Nvidia Corp. and Qorvo Inc. fell more than 2.8 percent. AT&T Inc. rose 2.9 percent after two analyst upgrades. Darden Restaurants Inc. gained as it plans to split off about 430 properties and transfer them to a real estate investment trust. Green Dot Corp. jumped 34 percent after authorizing a stock buyback plan and reaching a new, five-year deal with Wal-Mart Stores Inc.

The S&P 500 Index fell 0.1 percent to 2,120.94 at 12:34 p.m. in New York, after earlier rising within three points of its record close. The Dow Jones Industrial Average added 2.33 points, or less than 0.1 percent, to 18,122.11. The Nasdaq Composite Index slipped 0.2 percent from an all-time high Monday.

After talks on Monday, Greece now has 48 hours to bring a deal with its creditors to the finish line and end a five-month standoff over aid that risks default and possible exit from the euro. Greek Prime Minister Alexis Tsipras needs to shore up support at home for his plan, while euro-area finance ministers meet Wednesday to prepare the ground for a second, scheduled summit of European Union leaders Thursday.

Source: Bloomberg

Europe Stocks Rise for 4th Day on Optimism Over Greece, Economy

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European stocks posted their biggest four-day rally since January as the region leaders agreed Greece government was getting serious about reaching a deal.

The Stoxx Europe 600 Index rose 1.2 percent to 398.83 at the close of trading. A report showed euro-area factory and services expanded more than forecast in June, signaling a pickup in the region economy amid quantitative-easing measures by the European Central Bank.

European leaders agreed to step up talks and gave the country government 48 hours to make the final push to win aid. Shares jumped yesterday after Greece proposed a new set of reforms. The plans represent a step forward, German Chancellor Angela Merkel said last night. The ASE Index climbed 6.1 percent on Tuesday, completing its best four-day gain since February.

Among shares active on corporate news, Air France-KLM Group climbed 2.1 percent after the Dutch government said it could buy shares of the company if necessary to help combat competition from low-cost and Middle Eastern airlines. Ladbrokes Plc jumped 15 percent after the betting company confirmed it’s in merger talks with Gala Coral Group Ltd.

Petrofac Ltd. surged 6.2 percent after reporting backlog at record levels and saying profit will be heavily weighted toward the second half of the year. Berenberg Bank had said last week the company may issue a profit warning. Transocean Ltd. climbed 3.8 percent after saying the value of new contracts since its May report totaled about $109 million.

Source : Bloomberg