July 5, 2010
The euro ended a three-day winning streak and bonds rose after European Central Bank President Jean-Claude Trichet urged “austerity” measures to contain budget deficits. European shares swung between gains and losses, while stocks in Brazil and Canada declined.
The euro weakened 0.4 percent to $1.2515 at 10:04 a.m. in New York. The yield on 10-year German bunds fell four basis points to 2.55 percent. The Stoxx Europe 600 Index climbed less than 0.1 percent after dropping 0.1 percent, and September futures on the Standard & Poor’s 500 Index slipped 0.1 percent as U.S. markets were closed for a holiday. Brazil’s Bovespa Index fell 0.1 percent, and Canada’s S&P/TSX Composite Index dropped 0.7 percent. Copper increased for a second day.
Trichet said yesterday he has “no problem with austerity, rigor” as “good budgetary management,” following reports last week that showed U.S. payrolls dropped for the first time this year and factory orders slumped. China’s Premier Wen Jiabao said on July 3 policy makers face increasing “dilemmas” and the government will ensure “steady and relatively fast” growth.
“The outlook for growth around the world is certainly not as optimistic as it was a few months ago,” said Toby Hassall, a commodity analyst at CWA Global Markets Pty in Sydney. “There will be the longer-term participants in the market who are viewing this decline in price as a good time to get long.”
This article was posted: Monday, July 5, 2010 at 8:32 am