Euro rises broadly on Greece aid optimism, German data
The euro rose to a three-week high against the dollar
on Friday, heading for its second straight week of gains, on hopes that
Greece's lenders were nearing an agreement to release further aid to help the
debt-stricken country.
A rise in German business morale also boosted the
euro, although analysts said any euro strength should be limited given the
bleak economic outlook for the euro zone as a whole and expectations that the
European Central Bank will have to ease policy further.
Greece said the International Monetary Fund had
relaxed its debt-cutting target for the country, suggesting lenders were closer
to a deal for a vital aid tranche to be disbursed. But other sources involved
in the talks cautioned the funding gap was far bigger than Greece has
suggested.
The euro <EUR=> rose as high as $1.2943 on
Reuters data, breaking above resistance at $1.2910, its 55-day moving average.
It was last trading at $1.2941, up 0.5 percent on the day. It also hit a seven-month high of 106.73 yen
<EURJPY=> and was last at 106.65 yen, up 0.4 percent.
The euro has gained 2 percent against the dollar in
the past two weeks as yields on Greek bonds fell on expectations that euro zone
ministers should be able to sign off on another tranche of aid for Greece on
Monday.
German business morale surprised with its first rise
in seven months in November. The Munich-based Ifo think tank said its business
climate index rose to 101.4 from 100.0 in October, far surpassing even the
highest estimate in a Reuters poll.
Wall Street climbs in short session, led by tech stocks
U.S. stocks rose for a fifth day during a
holiday-shortened, thin trading session on Friday, as investors bid up large
technology stocks which had fallen to more attractive levels recently. Market participants were also encouraged by signs of
progress in talks about releasing aid to debt-saddled Greece, and piled into
U.S. retail shares as the holiday shopping season got underway.
U.S. equity market trading will end early at 1:00 pm
ET (1800 GMT) after closing Thursday for the Thanksgiving holiday. Trading
volume was limited, with many investors still on leave. Microsoft <MSFT.O> helped lift the Nasdaq,
gaining 2.4 percent to $27.61, while Oracle <ORCL.O> rose 1.8 percent to
$30.94.
Research in Motion <RIMM.O> surged on optimism
about its soon-to-be-launched BlackBerry 10 devices that will vie against
Apple's <AAPL.O> iPhone and Android-based smartphones. RIM was up 13.8
percent at $11.68. The Dow Jones industrial average <.DJI> rose
172.79 points, or 1.35 percent, to 13,009.68. The S&P 500 Index
<.SPX> added 18.12 points, or 1.30 percent, to 1,409.15. The Nasdaq
Composite Index <.IXIC> gained 40.30 points, or 1.38 percent, to
2,966.85.
For the week, the Dow gained 3.3 percent, the S&P
added 3.6 percent and the Nasdaq rose 4 percent. The S&P 500
closed above 1,400 and the Dow above 13,000 for the first time since Nov. 6.
Gold up 1 pct as
dlr drop sparks rally; $1,750 eyed
Gold
rose to its highest level in more than a month on Friday, gaining 1 percent as
a combination of dollar decline, options-related buying and technical support
sent the metal near $1,750 an ounce.
After
trading slightly higher in early U.S. dealings, gold suddenly surged and broke
above its 50 day
moving average, a key technical resistance the metal had failed to breach in
more than a month.
Bullion
also benefited as the dollar fell broadly, particularly versus the euro, on
hopes for a Greek aid package and a surprise improvement in German business
sentiment. [FRX/] Markets
could be choppier than usual in thin trading on Friday, with the metal markets
closing early and the U.S. stock market open for only a half-day of business
after the U.S. Thanksgiving holiday on Thursday.
Spot
gold <XAU=> was up 1 percent at $1,747 an ounce by 11:07 a.m. EST (1607
GMT). U.S.
COMEX gold futures for December delivery <GCZ2> were up $18.90 an ounce
at $1,747.10 in heavy trade. The first-notice day for December is next Friday.
Oil Rises on German Business Confidence
Oil rose after German business
confidence unexpectedly increased from the lowest level in two and a half years
in November, signaling Europe’s largest economy may gain strength. Futures jumped as much as 1.3
percent and the euro and equities rallied as the Munich-based Ifo institute’s
business climate index climbed to 101.4 from 100 in October. Economists
surveyed by Bloomberg forecast a drop to 99.5. Israeli troops fired on
Palestinians near the Gaza Strip, spurring accusations from both Israel and
Hamas that a truce was breached.
Crude oil for January delivery rose
82 cents, or 0.9 percent, to $88.20 a barrel at 12:03 p.m. on the New York Mercantile
Exchange. Futures, which are up 1.8 percent this week, have dropped 11 percent
this year.
The exchange will close at 1:30 p.m.
New York time today, an hour earlier than usual. There was no floor trading
yesterday because of the U.S. Thanksgiving holiday and all electronic
transactions will be booked with today’s trades for settlement purposes.
Brent for January settlement
increased 43 cents, or 0.4 percent, to $110.98 a barrel on the London-based ICE
Futures Europe exchange. The contract is heading for a 1.9 percent gain this
week.
Nikkei set to rise, may test a 7-month high on gains by exporters
Japan's Nikkei share average is set to rise on Monday
and may test a seven-month high, supported by a positive U.S. lead and expectations
that a weaker yen will boost earnings for exporters.
Sentiment was buoyed by indications that lenders are
closer to a deal for a vital aid tranche for Greece, which pushed the euro to a
three-week high against the dollar on Friday. The euro hit a seven-month high of 106.97 yen <EURJPY=>,
and was last at 106.92 yen, up 0.6 percent.
Exporters with high exposure to the euro zone, such as
carmakers like Mazda Motor Corp <7267.T> and precision equipment makers
like Canon Inc <7751.T> and Nikon Corp <7731.T>, may lead gains,
analysts said.
The Nikkei <.N225> rose 1.6 percent to 9,366.80
on Thursday, its highest closing level since May 2, taking the index near
"overbought" territory, with its 14-day relative strength index at
69.5. Seventy or above is deemed overbought. The Japanese market was closed for
a national holiday on Friday.
Seoul shares seen gaining, US holiday sales off to good start
Seoul shares are likely to gain on Monday, helped by a
promising start to the U.S. holiday shopping season, while concerns about U.S.
fiscal woes and Europe's debt crisis have receded somewhat.
U.S. shoppers went to stores earlier and bought online
more than before this Thanksgiving weekend, giving retailers a strong start to
the holiday shopping season, data showed on Sunday. Global stocks and the euro gained on Friday on signs
of progress in talks on releasing aid to Greece and after an influential German
survey found business sentiment had improved in Europe's largest economy. U.S.
stocks rose for a fifth day in a low-volume trading session. The Korea
Composite Stock Price Index (KOSPI) <.KS11> closed up 0.6 percent at
1,911.33 points on Friday.
Hong Kong shares poised for 4th-straight daily gain
Hong Kong shares are set to start the week with a
fourth-straight daily gain on Monday, buoyed by expectations that an agreement
at a meeting of euro zone finance ministers later in the day will help Greece
avoid a near-term bankruptcy.
The Hang Seng Index <.HSI> rose 0.8 percent to
21,914 points last Friday to its highest close since Nov. 7. The China
Enterprises Index <.HSCE> of the top Chinese listings in Hong Kong was
1.1 percent higher.
Both rose 3.6 percent over the week, with the Hang
Seng Index postings its best weekly showing in 2-1/2 months. The index is only
a little more than 1 percent below its 2012 intra-day high, recorded on Nov. 2.
Elsewhere in Asia, Japan's Nikkei <.N225> was up
1.2 percent, while South Korea's KOSPI <.KS11> was up 0.2 percent at 00.51
GMT.
