DJIA chart reading : side way range bound.
Hang Seng chart reading : correction range bound downside biased.
Investors lift stocks, remain cautious about Greece
LONDON, June 28 (Reuters) - Equities rose on Tuesday and the euro firmed with caution about Greece's vote on austerity measures later in the week vying with optimism about France's agreement to roll over holdings of mature Greek debt.
"There is a certain amount of optimism that somehow European policymakers will muddle through," said Michael Hewson, market analyst at CMC Markets, referring to Greece's debt problems.
Greek debt plan lifts stocks, euro
SINGAPORE, June 28 (Reuters) - Asian stocks rose and the euro edged up on Tuesday as investors cheered an agreement by French banks to roll over Greek debt, a move that could lessen the chance of a destabilising default by the nation at the heart of Europe's debt crisis.
"There will probably be some easing in the risk-off mode that the market is in, and such an outcome is likely to be positive for risky assets such as equities," said Koji Fukaya, director of global foreign exchange research at Credit Suisse Securities.
Asian Stocks Rise for Second Day (Source: Bloomberg)
Asian stocks rose, with the key regional index headed for its highest close in two weeks, amid signs Greece may avoid a default on its debts, lessening the risk to bank earnings, and after commodity prices advanced.
Obama, Republicans Focus on Narrower Deal on U.S. Debt as Deadline Nears (Source: Bloomberg)
President Barack Obama and Republicans are narrowing the debate on a deficit-cutting plan to a reduction of $1 trillion to $2 trillion, though whether that would settle the issue through the 2012 presidential election remains in doubt, according to budget and debt experts. White House press secretary Jay Carney said today that Obama will continue the deficit talks with Senate Democratic leaders tomorrow at the White House. Carney declined to say whether the president has scheduled any more meetings with Republicans following his discussion yesterday with Senate minority leader Mitch McConnell of Kentucky.
US consumer spending breaks 10-month rising streak
WASHINGTON, June 27 (Reuters) - U.S. consumer spending failed to rise in May, breaking 10 straight months of gains, as households struggled with rising prices and automakers could not deliver some popular models due to fallout from Japan's earthquake.
When adjusted for inflation, spending slipped 0.1 percent, the Commerce Department said on Monday. It was the second consecutive monthly drop on that basis.
Bank of America Said to Near $8.5 Billion Settlement With Bondholder Group (Source: Bloomberg)
Bank of America Corp. (BAC) is nearing an $8.5 billion settlement with a bondholder group including the BlackRock Inc. (BLK) to resolve claims over soured mortgage securities, three people briefed on the talks said. The bank’s board of directors is meeting today to discuss an accord, which would resolve demands from institutional investors that it buy back billions of dollars in home loans, said the people, speaking on the condition of anonymity because the talks aren’t public.
Japan Factory Output Rises for Second Month as Economy Rebounds From Quake (Source: Bloomberg)
Japan’s industrial production rose for a second month, as manufacturers restored operations at plants and supply-chain disruptions eased after the March 11 earthquake and tsunami. Factory output increased 5.7 percent in May from April, when it rose 1.6 percent, the Trade Ministry said in Tokyo today. The median estimate of 30 economists surveyed by Bloomberg News was for a 5.5 percent gain. The report adds to evidence that the world’s third-largest economy is pulling out of its slump as companies including Toyota Motor Corp. and Nissan Motor Co. hire workers and restore facilities damaged by the March 11 temblor. In another sign that the economy is recovering, retail sales fell at a slower pace than economists expected, the government said yesterday.
Japanese Stocks Advance as Greek Debt Crisis Concern Ebbs; Kyocera Gains (Source: Bloomberg)
Japanese stocks advanced to the highest in seven weeks amid rising confidence Greece will avoid a default, reducing a risk to bank earnings, and after commodity prices increased.
India’s Economy to Expand 8.5% Even After Rate Increases, Mukherjee Says (Source: Bloomberg)
India may achieve its growth target for this year even after the longest string of monetary tightening in a decade, Finance Minister Pranab Mukherjee said. Mukherjee said he is “still holding” the projection he made in the budget that India will achieve growth of about 8.5 percent in the current year. If the situation deteriorates, there “may be a downside slide, but I’m not expecting that,” he said in a Bloomberg News interview today in Washington.
King Defends Record-Low Rate as He Notes Threats From Greek Fiscal Crisis (Source: Bloomberg)
Bank of England Governor Mervyn King defended policy makers’ decision to hold interest rates at a record low as he noted risks to the U.K. economic recovery from the sovereign-debt crisis in the euro area. The bank’s “remit does allow for us to not to try to bring inflation back to the target immediately if that were to lead to undesirable volatility in output,” King said at the U.K. Parliament’s Treasury Committee in London today. “Most of us on the Monetary Policy Committee have taken the view that to tighten policy now would be to risk that.”
French banks agree to Greek debt rollover
ATHENS/PARIS, June 27 (Reuters) - France offered a radical solution Monday for banks to roll over some Greek debt for 30 years as the Greek government fought for political support of its five-year austerity plan to avert bankruptcy.
With depositors fleeing Greek banks in growing numbers and financial markets watching anxiously, President Nicolas Sarkozy told a news conference in Paris that French banks had reached a draft agreement with the authorities on a voluntary rollover of maturing bonds.
FOREX-Euro slips, investors edgy before Greek vote
LONDON, June 28 (Reuters) - The euro slipped on Tuesday, relinquishing early gains as investors worried about how Greece will repay its debts even if it passes austerity measures this week.
The common currency slipped 0.2 percent to $1.4260 , unable to maintain an early rally to $1.4330 as traders cited selling by model funds, along with European and U.S. corporates in choppy trade.
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