Euro Slumps in Worst Quarter on Record as Greek Aid Talks Stall

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The euro extended its biggest quarterly slide versus the dollar since its inception as Greece struggled to avert a default.

The 19-nation currency’s share of global reserve holdings fell to the least in 12 years amid the European Central Bank’s unprecedented monetary stimulus. That contrasts with the U.S. Federal Reserve, which is on track to raise interest rates this year for the first time since 2006.

The euro fell 0.8 percent to $1.0747 as of 3:50 p.m. in New York, after sliding 0.5 percent on Monday and losing 11 percent the past three months, the biggest quarterly drop since the shared currency began trading on Jan. 1, 1999. It declined 0.9 percent to 128.91 yen, pushing its drop since Dec. 31 to 11 percent, its biggest quarterly loss since September 2011.

The Bloomberg Dollar Spot Index, which measures the greenback against 10 major peers, added 0.1 percent to 1,201.01. That extended a ninth successive month of gains, the longest winning streak in data going back to 2004.

Source: Bloomberg

Gold’s March Loss Spurs Quarterly Decline on Fed Rate Outlook

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Gold futures fell for a second month in March, leading to a decline for the first quarter.

Futures traded mostly little changed on Tuesday, ending the day with a 0.2 percent loss after Federal Reserve Bank of Richmond President Jeffrey Lacker said there is a strong case to be made that interest rates should rise in June. Higher rates boost the appeal of assets with better yield prospects such as bonds and equities, while cutting the allure of gold, which generally offers returns only through price gains.

The metal fell 0.1 percent in the first quarter, a third straight slide. A statement from the U.S. central bank that showed policy makers cut their outlook for borrowing costs at the end of 2015 spurred a seven-session rally for gold futures through March 26. The gains fizzled after Fed Chair Janet Yellen the next day reiterated an outlook for tightening this year. The dollar climbed for a ninth consecutive month against a basket of 10 peers, curbing gold’s appeal as an alternative.

Gold futures for June delivery fell $2.10 to settle at $1,183.20 an ounce at 1:49 p.m. on the Comex in New York, posting a 2.5 percent drop for March.

Assets in exchange-traded products backed by the metal fell by 56.6 metric tons in March to 1,620.15 tons as of Monday, data compiled by Bloomberg show. The monthly drop was on pace to be the largest since December 2013.

Silver futures for May delivery dropped 0.5 percent to $16.598 an ounce. This quarter, the metal climbed 6.4 percent, the most since June.

Platinum futures for July delivery added 2.3 percent to $1,143.40 an ounce on the New York Mercantile Exchange. Prices still posted a third straight quarterly loss, the longest streak since 2011. Palladium futures for June delivery climbed 0.9 percent to $735.30 on Tuesday.

Source: Bloomberg

U.S. Stocks Trim Quarterly Gain as Health-Care, Industrials Fall

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U.S. stocks declined amid a retreat among health-care and industrial companies, trimming a ninth straight quarterly advance for the Standard & Poor’s 500 Index.

The S&P 500 lost 0.9 percent to 2,068.05 at 4 p.m. in New York, while marking its longest quarterly winning streak since 1998. The Nasdaq Composite Index, down 0.9 percent Tuesday, posted its longest quarterly winning streak ever.

The S&P 500 swung an average of 1.1 percent between its low of the day and its high in the first quarter, the widest daily moves since the second quarter of 2012, according to data compiled by Bloomberg. The gauge is still down 2.2 percent from a record on March 2 and among the worst performers in 24 developed markets this year.

Source: Bloomberg

European Stocks Close Lower on Greece Jitters

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European stock markets closed significantly lower Tuesday following mixed eurozone data and contentious Greek bailout talks, while London's main index failed to gain after an upgrade of British economic growth.

London's benchmark FTSE 100 tumbled 1.72 percent to end the day at 6,773.04 points.

Frankfurt's DAX 30 index slumped 0.99 percent to  close at 11,966.17 points, while the CAC 40 in Paris lost 0.98 percent to 5,033.64 points.

The euro fell to $1.0740 from $1.0825 late in New York on Monday.

Deflation in the eurozone eased in March, official data showed Tuesday, reducing concerns that the economy faces a dangerous spiral after four straight months of falling consumer prices.

But with a cash-strapped Greece in a bitter row with its European partners and on the cusp of tumbling out of the euro, analysts fear that a new debt crisis in the eurozone could affect the world economy.

Source : AFP