Friday, 12 June, 2015

Euro Falls With Europe Stocks on Greece; Bunds, Treasuries Climb

(Bloomberg) — The euro fell with European stocks on concern Greece’s efforts to renegotiate its debt and stay in the single currency are failing. German bunds, U.S. Treasuries and Asian stocks climbed. The euro weakened 0.2 percent at 8:04 a.m. in London as the Bild newspaper reported the German government is preparing for a Greek default. The Stoxx Europe 600 Index slid 0.2 percent as Standard & Poor’s 500 index futures dropped 0.2 percent. The MSCI Asia Pacific Index rose a third day, adding 0.3 percent. Greek, Italian and Spanish bonds declined. Oil and corn slipped on concerns over oversupply. Greece didn’t concede any ground on European Union proposals at a two-hour meeting concluding after midnight, Bild reported. Chinese stocks gained as brokerages speculated the central bank may lower banks’ reserve-requirement ratios, after South Korea and New Zealand cut interest rates this week. The Federal Reserve reviews borrowing costs next week. “It’s difficult to imagine what’s going to happen” if Greece fails to pay its debts, said Hajime Nagata, who invests in bonds for Tokyo-based Diam Co. “This news will be very supportive of U.S. Treasuries.” The yield on 10-year Treasuries fell 1 basis point to 2.37 percent, after sliding 11 basis points last session, while those for Germany dropped 2 basis points to 0.87 percent. The Greek 10-year yield jumped 2 basis points to 11.25 percent, while Italy’s climbed 3 basis points and Spain’s 4 basis points. Euro Weakens The euro fell to $1.1237 and the yen weakened 0.1 percent to 123.55 per dollar, after both currencies lost 0.6 percent Thursday. The Bloomberg Dollar Spot Index, a gauge of the U.S. currency against 10 major peers, rose 0.2 percent, paring losses this week to 1.3 percent. The Korean won lost 0.6 percent, while the Malaysian ringgit lost 0.3 percent. The International Monetary Fund said that its team negotiating with Greece left Brussels due to “major differences,” although it left the door open for further talks. The decision came amid increasing criticism from creditors at the Greek government’s refusal to bow to their demands, risking a default and ultimately an exit from the euro area. The Hang Seng Index gained 0.8 percent, while the Shanghai Composite Index advanced 0.9 percent. The People’s Bank of China may cut reserve requirements as early as this weekend, China Merchants Bank Co. said. Factory output and home sales data for last month signaled the economy may be stabilizing. May “data were generally better than April but weren’t strong enough to confirm a firmer recovery,” said Clement Cheng, a Hong Kong-based trader at RBC Investment Management. “The market is expecting further monetary loosening.” Japan’s Topix index closed up 0.2 percent. The S&P/ASX 200 Index in Sydney slipped 0.3 percent, led by energy producers. West Texas Intermediate crude lost 0.8 percent to $60.28 a barrel. The International Energy Agency said Thursday that crude’s rally is under threat as the biggest members of the Organization of Petroleum Exporting Countries group produce record amounts. Brent oil lost 0.6 percent to $64.74. Corn futures declined for a fourth day, dropping 0.5 percent, after the U.S. Department of Agriculture said on June 10 that global stockpiles would be the biggest since 1988. Archr LLP is Authorised and regulated by the Financial Conduct Authority (FCA reference 617163). Archr LLP is not covered by the Financial Services Compensation Scheme (FSCS). Archr is registered in England and Wales No. OC371018. Registered office Chancery House, 30 St Johns Road, Woking, Surrey, GU21 7SA This message may contain confidential or privileged information. If you are not the intended recipient, please advise us immediately and delete this message. The unauthorised use, disclosure, distribution and/or copying of this e-mail or any information it contains is prohibited. This information is not, and should not be construed as, a recommendation, solicitation or offer to buy or sell any securities or related financial products. This information does not constitute investment advice, does not constitute a personal recommendation and has been prepared without regard to the individual financial circumstances, needs or objectives of persons who receive it. You are receiving this email because you are a valued client of Archr.