Europe Stocks, Euro Gain as Greece Reaches Austerity Agreement for Bailout

By Stephen Kirkland and Lynn Thomasson - Feb 9, 2012 9:03 PM GMT+0700
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A financial trader speaks on a telephone as he works at his computer screens at the Frankfurt Stock Exchange in Frankfurt. Photographer: Ralph Orlowski/Bloomberg

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Feb. 9 (Bloomberg) -- Michael Chiu, a fund manager at ING Investment Management Asia, talks about China's stocks and economy. He also discusses Taiwan stocks. He speaks in Hong Kong with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)

European stocks rose for the first time in four days and the euro strengthened after European Central Bank President Mario Draghi said Greek party leaders reached a deal on budget measures. U.S. index futures gained after jobless claims unexpectedly fell.

The Stoxx Europe 600 Index added 0.5 percent at 8:44 a.m. in New York. Standard & Poor’s 500 Index futures advanced 0.1 percent. The euro appreciated 0.2 percent to $1.3285. The 10- year Treasury yield rose two basis points. The 10-year gilt yield advanced two basis points after the Bank of England said it will expand asset purchases. Commodities extended this year’s longest rally.

The leaders of Greece’s main political parties have reached an agreement on austerity measures needed to secure a second international rescue program, Draghi said at a press conference in Frankfurt. The region’s finance ministers meet in Brussels today.

Two shares advanced for every one that fell in the Stoxx 600. Daimler AG rallied 4.2 percent to a six-month high, leading gains in automakers, as it reported a 39 percent surge in fourth-quarter profit. Credit Suisse Group AG (CSGN) dropped 3 percent as the second-biggest Swiss bank reported a loss in the fourth quarter for the first time since 2008, hurt by “adverse markets” and costs to reorganize the investment bank.

Global stocks entered a bull market yesterday as the MSCI All-Country World Index extended its gain from its October low to 20 percent. Profits beat projections at 49 percent of the 821 companies in the global benchmark that released quarterly results since Jan. 9, according to data compiled by Bloomberg.

Jobless Claims

The S&P 500 advanced for two straight days, reaching the highest level since July 7 yesterday. Applications for jobless benefits decreased 15,000 in the week ended Feb. 4 to 358,000, Labor Department figures showed today. Economists forecast 370,000 claims, according to the median estimate in a Bloomberg News survey.

The S&P GSCI gauge of 24 commodities climbed 0.6 percent. Aluminum rose 1.4 percent and Brent crude advanced 1 percent to $118.35 a barrel, the eighth consecutive gain and the longest advance for the March futures contract since October 2009.

To contact the reporters on this story: Stephen Kirkland in London at skirkland@bloomberg.net; Lynn Thomasson in Hong Kong at lthomasson@bloomberg.net;

To contact the editor responsible for this story: Stuart Wallace at Swallace6@bloomberg.net