Investors seek a haven from Europe’s debt crisis and the prospect of weakening currencies
Euro strengthens to two-week high after Spain seeks bailout fund
The euro rose against most of its major counterparts after the region’s governments agreed to provide Spain with a bailout loan, fanning expectations European leaders will step up effort to counter the debt crisis. The 17-nation currency climbed to a two-week high after Spain asked for as much as 100 billion euros ($126 billion) to rescue its banking system, making it the fourth member in the currency bloc to seek rescue.
Euro gains seen by Stiglitz removing $445 billion Greek debt
Rather than a euro failure, an orderly Greek exit from the currency has Nobel laureate Joseph Stiglitz and Nomura Holdings Inc. chief strategist Jens Nordvig predicting a stronger and more stable monetary union. While Societe Generale SA suggests that the euro might break up because of the cost of Greece’s departure, the nation accounts for just 2.3 % of the 17-nation trading bloc’s GDP.
Gold climbs for second day as Spain bailout request boosts Euro
Gold rose 2nd day as the euro rallied against the USD after Spain asked for a bailout and on speculation that demand from China will be sustained. Platinum and palladium climbed. Immediate-delivery gold rose as much as 0.9 % to $1,608.25 an ounce, and was at $1,597.03 at trade . The metal last week capped its worst 5-day period in a month, dropping to a one-week low of $1,556.68 on June 8, after Fed held off detailing measures to boost the U.S. economy. Spain requested as much as 100 billion euros ($125 billion) of European bailout funds to shore up its banking system, becoming the fourth euro member to seek a bailout since the debt crisis began almost three years ago. That sent the euro higher for the first time in three days against the USD and helped drive up oil and copper. Greek voters decide at a June 17 election whether to honor the international bailout.
Gold-investment demand in China to advance 10%, ICBC says
Gold-investment demand in China may gain more than 10 % this year as buyers seek a haven from Europe’s debt crisis and the prospect of weakening currencies, according to the country’s largest bullion bank. “Investors here want to hold part of their assets in gold to hedge for the risks, especially now that the financial crisis has evolved into a sovereign crisis
Copper jumps most in four months as China’s purchases climb 12%
Copper advanced the most in more than four months after imports by China, the world’s biggest consumer, surged 12 % and Spain’s bailout request boosted the euro to a two-week high against the USD. LME 3M gained as much as 2.9 % to $7,506.75 the biggest intraday increase since Feb. 3, and traded at $7,460 by 12:24 p.m. Tokyo time. The metal fell to $7,233.25 on June 8, the lowest level for the year
Oil advances most in five months on Spain bailout, China imports
Oil rose the most in more than five months in New York on speculation fuel demand will increase after Spain requested a European bailout to shore up its banks and China’s imports of crude climbed to a record. Futures increased as much as 3 %, the biggest gain since Jan. 3. Spain will seek $125 billion from euro-area nations, Economy Minister Luis de Guindos told a press conference in Madrid yesterday.