EUR/USD The euro snapped an advance from yesterday before Italy sells debt this week and Greece holds general elections on June 17 amid concern Europe’s fiscal crisis is spreading.
The euro fell 0.1 percent to $1.2485 as of 11:02 a.m. in Tokyo from the close in New York yesterday when it rose 0.2 percent. It was little changed at 80.27 U.K. pence after having lost 0.7 percent in the prior two days. The dollar added 0.1 percent to 79.64 yen. The yen was unchanged at 99.43 per euro.
AUD/CAD The Australian dollar declined against most major peers as Asian stocks erased earlier gains and amid concern a Greek election this weekend will further roil Europe’s debt crisis.
The Australian dollar lost 0.2 percent to 99.37 U.S. cents as of 12:38 p.m. in Sydney from yesterday, when it jumped 1 percent. It bought 79.14 yen from 79.20 yesterday, when it advanced 1.1 percent. Australia’s currency was little changed
USD/JPY The dollar rose against the yen on Wednesday after stronger-than-expected Japanese machinery data hit the wire and sparked demand for risk assets such as stocks, which sent investors selling the safe-haven yen.
In Asian trading on Wednesday, USD/JPY hit 79.62, up 0.14%, up from a low of 79.50 and off a high of 79.67. Gains made in U.S. markets earlier pushed Japanese stocks up as well, which pushed the yen down.
Commodities
Oil fell for the fourth time in five days in NYMEX amid speculation that OPEC will keep production quotas unchanged even after a slide in prices.
Oil for July delivery dropped as much as 62 cents to $82.70 a barrel in electronic trading on the NYMEX, and was at $82.76 at 11:43 a.m. Sydney time. The contract rose 0.8 percent yesterday to $83.32. Prices are down 16 percent this year.
Gold for August delivery in New York declined 0.2 percent to $1,611.20 an ounce at 8:11 a.m. in Melbourne, while immediate-delivery bullion was little changed at $1,610.22.
Gold gained for the third straight session yesterday on speculation that U.S. policy makers will announce additional stimulus measures to boost growth.
Equities
Asian stocks erased gains, with the regional benchmark index heading for its second day of decline, as concern heightened Europe will struggle to contain its debt crisis ahead of Italy’s bond auctions and Greece’s election.
The MSCI Asia Pacific Index (MXAP) dropped 0.2 percent to 112.66 as of 11:39 a.m. in Tokyo, erasing gains of as much as 0.4 percent earlier. About four shares fell for every three that rose in the measure. The gauge fell 12 percent from this year’s peak on Feb. 29 through yesterday amid concern growth in the U.S. and China is slowing and as Europe’s debt crisis intensified. Greece holds elections June 17 that may determine the country’s future in the euro.
European stocks U.S. index futures rose on speculation policy makers will do more stimulate the economy. Commodities dropped for a fourth day and Spanish bonds fell.
The Stoxx 600 advanced even as two shares fell for every one that advanced. Lafarge SA (LG) gained 1.5 percent as the world’s biggest cement maker said it plans to make cost savings of 1.3 billion Euros by 2015.
U.S stocks advanced, rebounding from yesterday’s decline, amid speculation the Federal Reserve will take steps to stimulate the economy and after the European Central Bank endorsed a plan to guarantee bank deposits.
The S&P 500 advanced 1.2 percent to 1,324.18 at 4 p.m. New York time, after briefly erasing gains following Fitch Ratings’ downgrade of 18 Spanish banks. The Dow Jones Industrial Average increased 162.57 points, or 1.3 percent, to 12,573.80. Trading volume for exchange-listed stocks in the U.S. was about 6.2 billion shares, 8.6 percent below the three-month average.
