Daily Market Outlook

Currencies

• EUR/USD The Euro rose against the dollar and the yen, snapping five days of losses, as speculation that European policy makers will boost the firepower of their rescue fund eased concern the region’s debt crisis will worsen.
  • The Euro gained 0.8 percent to $1.2158 at 5 p.m. New York time after dropping yesterday to $1.2043, the weakest level since June 2010. It has lost 4.1 percent this month. The shared currency rose 0.8 percent to 95.03 yen, paring its July loss to 6 percent. It slid yesterday to 94.12, the lowest since November 2000. Japan’s currency was little changed at 78.16 per dollar.

• USD/JPY The Japanese Yen gained against most of its 16 major counterparts amid signs that the global growth is slowing, boosting demand for the currency as a refuge.
  • The Japanese yen gained 0.3 percent to 94.75 per euro as of 9:39 a.m. in Tokyo from the close in New York yesterday. The Japanese currency fetched 78.10 per dollar from 78.16. It touched 77.94 on July 23, the strongest since June 1.

• USD/CAD The Canadian dollar rose from the lowest level in two weeks and posted the biggest one-day gain this month on speculation central banks will consider increasing monetary stimulus to spur growth, boosting higher-risk assets.
  • Canadian Dollar currency climbed 0.7 percent, the most since June 29, to C$1.0155 per U.S. dollar at 5 p.m. in Toronto. The currency is up 0.1 percent this month versus the greenback. One Canadian dollar buys 98.48 U.S. cents.

Commodities

• Oil  dropped for the first time in three days in New York on concern rising stockpiles in the U.S., the world’s biggest crude consumer, signal faltering demand.
  • Oil for September delivery slid as much as 34 cents to $88.63 a barrel in electronic trading on the New York Mercantile Exchange (NYMEX) and was at $88.73 at 10:51 a.m. Sydney time. The contract yesterday climbed 47 cents to $88.97, the highest close since July 20. Prices are 10 percent lower this year.

• Gold edged lower on Thursday after hitting a three-week high in the previous session, as the euro retreated from gains sparked by expectations that the European Central Bank may consider leveraging the region’s rescue fund.
  • Spot Gold inched down 0.2 percent to $1,601.21 an ounce by 0028 GMT, after rallying nearly 1.5 percent on Wednesday — its biggest one-day rise since late June. * U.S. gold futures contract for August delivery lost nearly half a percent to reach the price of $1,600.40

Equities

• Asian stocks rose, with the regional benchmark index set to snap a four-day loss, after a drop in U.S. new home sales fueled speculation the Federal Reserve may take new steps to spur growth. Gains were limited as Japanese companies such as Canon (7751) Inc. slumped on earnings results.
  • The MSCI Asia Pacific Index (MXAP) rose 0.3 percent to 113.23 as of 9:57 a.m. in Tokyo, with almost three stocks rising for each two that fell. Markets in Hong Kong and China are yet to open. Utility, finance and material firms led gains in the measure, which closed yesterday at the lowest level since June 12.

• European stocks retreated for a fourth day as reports showed the U.K. economy shrank the most in three years last quarter and U.S. new-house sales unexpectedly dropped last month.
  • The Stoxx Europe 600 Index (SXXP) slid 0.1 percent to 250.39 at the close of trading. The benchmark measure has dropped 4.4% over the last four days on concern that Greece will default and more Spanish regions will follow Valencia in seeking a bailout from the central government.

• U.S stocks fell, after Apple’s plunge Offset banks and about five stocks rose for every four falling on U.S. exchanges at 4 p.m. New York time. The S&P 500 fell as a report showed demand for new U.S. homes unexpectedly dropped in June from a two-year high.
  • The S&P 500 (SPX) erased gains in the final hour of trading as a rally in bank and industrial shares wasn’t enough to overcome disappointing results at Apple (AAPL) Inc. and an unexpected drop in new home sales.