US stocks rose today, helped by optimism that Greece was close to an agreement to avoid default and as further gains in bond yields lifted financials.
The S&P financial index climbed 0.7 percent and was among the day’s top sector performers as US benchmark Treasury debt yields jumped to seven-month highs, extending recent gains.
Adding to the day’s upbeat tone, Greece’s international creditors signaled they were ready to compromise to avert a default even as Athens indicated it might skip an IMF loan repayment due this week.
Economic data bolstered the view the Federal Reserve may consider raising interest rates later this year, including reports showing the US trade deficit narrowed in April on a drop in imports and private sector jobs in May.
The Dow Jones industrial average rose 64.33 points, or 0.36 percent, to 18,076.27, the S&P 500 gained 4.47 points, or 0.21 percent, to 2,114.07 and the Nasdaq Composite added 22.71 points, or 0.45 percent, to 5,099.23.
The Fed, in its Beige Book report, said US economic activity expanded from early April to late May and growth was expected to continue at a «modest» to «moderate» pace.
The consumer discretionary index rose 0.7 percent.
European shares turned lower late, mirroring a selloff in German bonds, after the European Central Bank raised its inflation forecasts and said it would look through any debt market volatility.
Main indexes gave away early gains while the euro rose broadly and German Bund yields soared after ECB President Mario Draghi said the bank would maintain a steady policy and look through bond market volatility.
The pan-European FTSEurofirst 300 stock index closed down 0.12 percent, even while most national indexes remained in positive territory, with the index price skewed by a surge in the euro following Draghi’s comments.
Germany’s DAX gained 0.8 percent, helped by a rise in Adidas after FIFA President Sepp Blatter said he would step down as soccer’s global governing body comes under scrutiny. Adidas is a FIFA sponsor and experts said Blatter’s resignation would be a major relief.
Greece’s Athex index jumped 4.13 percent before talks between Greek Prime Minister Alexis Tsipras and European Commission President Jean-Claude Juncker later today.
Earlier, Japanese shares fell as investors booked profits from the market’s longest rally in nearly three decades, with interest-rate sensitive stocks under the strongest pressure after bond yields rose globally.
The Nikkei share average ended 0.3 percent lower at 20,473.51 points. The market had rallied for 12 straight sessions until Monday, its longest winning streak since 1988.
The broader Topix fell 0.3 percent to 1,669.99 and the JPX-Nikkei Index 400 shed 0.3 percent to 15,074.78
Source: Buenos Aires Herald