Gold at 3-week low on stronger U.S. data, Greece optimism

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Gold fell to a three-week low on Wednesday as data showed the U.S. private sector added more jobs than expected in May and prospects increased of a debt deal for Greece.

U.S. private employers added 201,000 jobs, above the 165,000 in April and economists' estimate of a 200,000 gain.

Spot gold was down 0.7 percent at $1,185.56 an ounce by 2:56 p.m. EDT (1856 GMT) after falling more than 1 percent to the lowest since May 11 at $1,179.43. U.S. gold futures for August delivery settled down $9.50 at $1,184.90.

Gold fell despite the U.S. dollar hitting its lowest against the euro in over two weeks after the European Central Bank kept monetary policy steady. European shares turned lower but U.S. stocks extended gains, a source of pressure for gold prices, after the Federal Reserve's Beige Book showed U.S. economic activity expanded from early April to late May.
Source : Reuters

Euro Rises to 2-Week High as Draghi Points to Improving Economy

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The euro rose to a two-week high after European Central Bank President Mario Draghi pointed to signs of improvement in the region’s economy.

The 19-nation currency strengthened against most major peers as Draghi said inflation would start accelerating later this year. While he was committed to seeing through the central bank’s quantitative-easing program, the ECB president said there was no need to expand its bond-purchase program. Germany’s 10-year bond yield increased to the highest this year, adding to the allure of euro-denominated assets.

Gaffney said he expects the euro to fall in the longer term and sees the rally as a selling opportunity.

The euro advanced 0.9 percent to $1.1251 at 2:53 p.m. in New York, touching the highest since May 19. It climbed 1.1 percent to 139.93 yen, reaching the strongest since Jan. 13. The dollar added 0.2 percent to 124.37 yen.

Source : Bloomberg

Asian Stock Indexes Advance Amid Optimism on Greece Debt Talks

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Asian stock indexes rose after a rebound in U.S. shares as investors speculated Greece will reach a deal with its creditors. Japan’s benchmark gauge climbed as the yen declined against the dollar.

The MSCI Asia Pacific Index traded little changed at 150.23 as of 9:10 a.m. in Tokyo. The Standard & Poor’s 500 Index advanced 0.2 percent on Wednesday as Greek Prime Minister Alexis Tsipras pursued late-night talks with European officials in Brussels. Greece will near an agreement in the “next days,” Prime Minister Alexis Tsipras said, adding there was no need to worry about the first of four repayments due to the International Monetary Fund Friday.

Yields on 10-year Australian and New Zealand bonds climbed after Mario Draghi inflamed global bond losses, helping send 10-year German bund yields up another 17 basis points on Wednesday as the European Central Bank chief warned about ongoing volatility in the market and forecast faster inflation.

Source : Bloomberg

Japanese Stocks Rise as Yen Weakens Versus Euro on Greece Talks

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Japanese stocks rose, heading for the first gain in three days, as signs Greece will reach a deal with its creditors saw the euro gain against the yen, boosting the outlook for earnings at exporters.

The Topix index climbed 0.2 percent to 1,672.72 as of 9:01 a.m. in Tokyo, with three stocks rising for every two that fell. The Nikkei 225 Stock Average added 0.3 percent to 20,543.31. The yen traded at 124.33 per dollar and 140.02 per euro. The euro jumped after European Central Bank President Mario Draghi said inflation was on a firm trend and as investors speculated Greece and its creditors will reach an agreement.

Positive developments in the euro area led “the euro to rise against the yen,” said Mitsushige Akino, executive officer at Ichiyoshi Asset Management Co. in Tokyo. “In the short-term, this should be positive for exporting stocks.”

The yen has weakened 2.7 percent against the euro in the past two days. Losses accelerated after Draghi said inflation will quicken in the 19-nation euro area.

E-mini futures on the Standard & Poor’s 500 Index were little changed after the underlying measure gained 0.2 percent on Wednesday in New York.

Source : Bloomberg

U.S. Stocks Rise Amid Greek Talks as Banks Gain

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U.S. stocks advanced, after falling for the third time in four sessions, as banks and insurers rose with Treasury yields and investors speculated Greece will reach a deal with its creditors.

The Standard & Poor’s 500 Index added 0.2 percent to 2,114.26 at 4 p.m. in New York, and intraday came within 0.5 percent of its all-time closing high set last month.

Investors are speculating that Greece will reach a deal with European leaders and the International Monetary Fund before payment deadlines due this month. Prime Minister Alexis Tsipras will hear details of a final proposal from creditors when he meets European Commission President Jean-Claude Juncker in Brussels on Wednesday.

Investors are also assessing economic reports for clues on when the Federal Reserve will raise interest rates. The economy expanded in the past two months, even as manufacturers in some regions took a hit from a stronger dollar and a slowdown in energy-related investment, the Fed’s Beige Book report showed today. Economists project the first Fed rate increase will come in September.

Source : Bloomberg