The Stoxx Europe 600 Index climbed 0.5 percent as of 6:35 a.m. in New York, with Greece’s ASE Index jumping 6.8 percent. New Zealand’s dollar tumbled to the lowest in almost five years. Commodities dropped for the first time in five days, led by a decline in copper. Asian equities rose and U.S. futures contracts were little changed.
Greek Prime Minister Alexis Tsipras heads into talks with his country’s creditors after telling the leaders of France and Germany that his government will work with “higher intensity” to reach an agreement. The New Zealand dollar dropped after the central bank lowered the benchmark interest rate to 3.25 percent and signaled potential for another cut by mid-2016. The U.S. reports retail sales and jobless claims data on Thursday.“Europe is repairing and Greece is not a problem,” said John Haynes, head of research at Investec Wealth & Investment in London. “People are increasingly unconcerned whether Greece stays or goes. The majority of Europe is in a good situation. We are positive on a longer-time horizon.”
U.S. retail sales probably increased last month, according to a Bloomberg survey of economists. The number of Americans filing claims for jobless benefits last week was probably 275,000 versus 276,000 a week earlier. Both figures are due to be published at 8:30 a.m.Treasury 10-year note yields were little changed at 2.49 percent, the highest since October. Benchmark German 10-year bund yields were also little changed at 0.98 percent.
The kiwi sank to as low as 69.98 U.S. cents, the weakest intraday level since September 2010, after the Reserve Bank of New Zealand’s decision. It lost 2.4 percent against the neighboring Aussie dollar, the steepest descent since October 2008, as Australian government data showed unemployment unexpectedly fell in May to the lowest in a year.The dollar added 0.5 percent to $1.1266 per euro and climbed 0.4 percent to 123.61 yen.
The cost of insuring corporate debt fell, with the Markit iTraxx Europe Index of credit-default swaps one basis point lower at 66 basis points, according to data compiled by Bloomberg. The gauge is down for a second day after reaching the highest since October this week. Average yields on investment-grade bonds in euros climbed for a ninth day to close at a 10-month high of 1.39 percent on Wednesday, Bank of America Merrill Lynch data show.
The Shanghai Composite Index rose for first time in three days, advancing 0.3 percent and Hong Kong’s Hang Seng China Enterprises Index gained 0.9 percent. China’s industrial output rose 6.1 percent in May, and retail-sales growth kept pace with the previous month, reports showed on Thursday.South Africa’s rand led emerging-market currencies lower, dropping 1 percent. Russia’s ruble also slid 1 percent, halting four days of gains.Ukraine’s Eurobonds fell for a third day after the Wall Street Journal reported that Finance Minister Natalie Jaresko is seeking a 40 percent principal reduction in restructuring negotiations with creditors.
The Bloomberg Commodity Index dropped 0.7 percent. The gauge climbed to the highest in more than two weeks on Wednesday. Copper fell as much as 1.9 percent on the London Metal Exchange, snapping a four-day rally.West Texas Intermediate crude dropped 0.9 percent to $60.89 a barrel after surging 5.7 percent the previous two days. The International Energy Agency said Thursday that this year’s price rally is under threat as the biggest members of the Organization of Petroleum Exporting Countries pump record amounts of crude. Brent fell 0.8 percent.