Euro Holds Drop as ECB Tightens Greek Terms; China Futures Clim

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The euro held declines versus major peers and Japanese index futures dropped as the European Central Bank tightened the terms of Greece™s bailout by moving to limit funding for lenders. Australian bonds rose, while Chinese stock futures jumped after a reduction in the bank reserve ratio.

The 19-nation euro was little changed at $1.1330 by 7:44 a.m. in Tokyo, after sinking as much as 1.4 percent Wednesday. Nikkei 225 Stock Average futures fell 0.3 percent in Chicago as the Standard & Poor™s 500 Index erased a spike higher to close down 0.4 percent after the ECB move. Ten-year Australian yields fell seven basis points amid a four basis-point drop in Treasury rates, while New Zealand™s NZX 50 Index lost 0.1 percent after crude oil resumed its decline after a four-day rally. Futures on the FTSE China A50 Index rose 5.1 percent in recent trading.

The ECB said it will no longer suspend its own collateral rules for Greek government debt, citing doubt over the new government™s commitment to previous reform pledges. The decision, which came hours after Greek Finance Minister Yanis Varoufakis met with ECB President Mario Draghi, will force Greek lenders to seek funding from their own central bank at less-advantageous rates than was offered by the ECB. China joined the global wave of monetary easing late Wednesday by cutting the reserve requirement to boost the supply of loans.

Source : Bloomberg

Gold Rises for First Time in Three Days on China Monetary Easing

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Gold futures rose for the first time in three days as China took steps to shore up economic growth amid signs of a deepening slowdown, boosting demand for the metal as a store of value.

China reduced the amount of cash lenders must set aside as reserves in a bid to increase liquidity, following capital outflows and weaker manufacturing. Gold pared earlier gains of as much as 1 percent after a report showed U.S. service industries expanded at a faster pace last month.

The metal in January jumped the most in three years as concern mounted that Greece would exit the euro area and officials in Europe and Asia announced stimulus to bolster stagnating economies. Imports by India, the world™s second-biggest user, surged in the 10 months ended Jan 31 after the government eased curbs on purchases.

On the Comex in New York. gold futures for April delivery rose 0.3 percent to settle at $1,264.50 an ounce at 1:51 p.m. Aggregate trading was 25 percent below the 100-day average, according to data compiled by Bloomberg. The price fell 1.5 percent in the previous two days on concern that U.S. interest rates will increase soon.

Last year, gold posted a consecutive annual decline for the first time since 1998 as the U.S. economy gained traction and equities surged to a record.

Source : Bloomberg

U.S. Stocks Fall, Erasing Gain, as ECB Tightens Rules on Greece

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The Standard & Poor™s 500 Index fell, after the biggest two-day rally in almost a month, as concern about Greece™s debt and a decline in oil overshadowed better-than-forecast earnings from Walt Disney Co. to Whirlpool Corp.

The Standard & Poor™s 500 Index dropped 0.4 percent to 2,041.38 at 4 p.m. in New York.

Stocks fell in the final 30 minutes of trading as the European Central Bank said it lifted a waiver on Greek government debt as collateral. During the debt crisis, which struck in 2010, Greece has met its obligations by issuing short-term bills to local banks, which pledged them to the ECB as collateral.

Equities fell earlier in the day as crude oil declined after weekly inventory data showed stockpiles at their highest levels since at least 1982.

Source : Bloomberg        

European Stocks Rise Third Day as Drugmakers, Greek Shares Gain

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European stocks climbed for a third day, as an increase in health-care shares and Greek companies outweighed a drop in energy producers.

The Stoxx Europe 600 Index rose 0.5 percent to 372.1 at the close of trading, reversing losses of as much as 0.3 percent. It extended gains earlier after a report showed U.S. service industries expanded at a faster pace than forecast. Drugmakers were among the biggest contributors to the advance, with Roche Holding AG and Novartis AG up more than 2 percent, while oil-and-gas shares fell 0.9 percent as a group.

Greece™s ASE Index climbed 0.9 percent, after rising 2.8 percent, and reversing losses of as much as 2.6 percent. Prime Minister Alexis Tsipras and his finance minister are visiting European leaders to negotiate new terms on repaying Greece™s debt. German Chancellor Angela Merkel indicated that a diplomatic offensive to ease bailout-aid requirements is failing to win over converts.

Greek lenders rallied, with Piraeus Bank SA and Eurobank Ergasias SA jumping at least 11 percent. Finance Minister Yanis Varoufakis said he had œvery fruitful talks over the European Central Bank™s support of the Greek banking system after he met with President Mario Draghi in Frankfurt.

Source : Bloomberg

U.S. Stocks Fluctuate on Earnings; Oil Resumes Drop, Euro Slides

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U.S. stocks fluctuated, as gains in consumer shares offset a drop among energy producers. Crude oil resumed its decline following a rise in American inventories, while the euro weakened for the first time in three days as Greece continues to renegotiate its debt.

The Standard & Poor™s 500 Index slipped less than 0.1 percent at 12:12 p.m. in New York following a two-day rally. Energy producers lost 1.1 percent, while Walt Disney Co. surged to an all-time high on earnings. West Texas Intermediate crude retreated 5.1 percent to $50.36 a barrel, after rallying 19 percent in four days. The yield on 10-year Treasuries rose a third day. The euro dropped 0.4 percent to $1.1430. Futures on the FTSE China A50 Index jumped 5.3 percent after the central bank cut banks™ reserve ratio.

Data showed U.S. service industries expanded at a faster pace in January, while hiring fell more than forecast. Oil slid as U.S. stockpiles rose to the highest since at least 1982. Crude had rebounded from the lowest level in almost six years as companies began cutting investments. Greek Prime Minister Alexis Tsipras and his finance minister are visiting European leaders to negotiate new debt terms. German Chancellor Angela Merkel indicated the offensive is failing to win over converts.

Source : Bloomberg