Reuters: US Dollar Report: GLOBAL MARKETS-Shares rise on hopes for Spanish banks, policy stimulus

Reuters: US Dollar Report Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

GLOBAL MARKETS-Shares rise on hopes for Spanish banks, policy stimulus Jun 7th 2012, 00:39 Wed Jun 6, 2012 8:39pm EDT * MSCI Asia ex-Japan up 1 pct, Nikkei up 1.1 pct * Euro steadies, yen off vs dollar * Fed's Yellen argues for more easing By Chikako Mogi TOKYO, June 7 (Reuters) - Asian shares rose on Thursday on signs European policymakers were seeking a solution for ailing Spanish banks and amid growing expectations for additional monetary stimulus if major economies deteriorate further. Such hopes strengthened after Federal Reserve Vice Chair Janet Yellen on Wednesday laid out the case for the U.S. central bank to ease monetary conditions to shield the U.S. economy as financial turmoil in Europe mounts. MSCI's broadest index of Asia-Pacific shares outside Japan rose 1 percent and Japan's Nikkei average advanced 1.1 percent. Those gains follow climbs for global stocks on Wednesday with the Dow Jones industrial average and the Standard & Poor's 500 Index up more than 2 percent for their biggest daily percentage increases since Dec. 20. The S&P also staged a major reversal above its 200-day moving average. Although the European Central Bank and U.S. Federal Reserve officials on Wednesday played down the likelihood of any imminent monetary policy stimulus, they noted mounting market tensions and downside risks to their economies. "Although there were no overt hints of immediate action from the European Central Bank, investors feel that the overall tone of global policymakers is accommodative of a breakthrough at the U.S. FOMC and EU leaders' summit scheduled later in the month," said Rhoo Yong-suk, an analyst at Hyundai Securities. The ECB kept interest rates steady at 1 percent on Wednesday and President Mario Draghi denied an imminent third round of long-term refinancing operations. In the United States, Atlanta Fed President Dennis Lockhart and John Williams, of the San Francisco Fed bank, on Wednesday noted Europe's brewing crisis was the main threat to the United States and said they are prepared to take even more policy action to boost the erratic U.S. economic recovery. The Fed's Beige Book summary of business activity on Wednesday showed U.S. economic growth picked up over the two prior months and hiring showed signs of a modest increase, but last week's jobs data for May showed employment contracted sharply, sparking a heavy sell-off across the markets. Investors were now turning their focus to Fed Chairman Ben Bernanke, who is due to testify on the U.S. economy before a congressional committee later on Thursday, ahead of a Fed policy meeting later this month. The dollar index, measured against a basket of major currencies, eased 0.2 percent while the euro steadied around $1.2580, moving away from Friday's low of $1.2288, its lowest in nearly two years. The safe-haven yen traded 0.1 percent lower against the dollar at 79.30 yen. U.S. crude rose 0.5 percent at $85.46 a barrel, while Brent crude was up 0.3 percent at $101.92 on Thursday. Investor risk appetite had fallen significantly on concerns about Spain's ability to rescue its banks and refinance the country's huge debts as its borrowing costs soared. Sources said on Wednesday that European officials are urgently exploring ways to rescue Spain's debt-stricken banks, with lawyers examining how Madrid could get money from the euro zone's rescue funds without the stigma of a full economic adjustment programme. Spain will test the market on Thursday by issuing between one and two billion euros ($1.3 billion-$2.5 billion), split between three bonds, the lowest target it has set this year. The cost of insuring against corporate and sovereign defaults in Asia eased further on Thursday, narrowing the spread on the iTraxx Asia ex-Japan investment-grade index by 4 basis points. Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions