Euro climbs as Draghi talks up growth, gold slips: Markets wrap

Bloomberg.- Central banks dominated markets on Thursday, with the euro and bonds whipsawed after the ECB kept rates on hold before the bank’s President Mario Draghi talked up European growth. Stimulus was maintained in Japan, sinking the yen and lending support to the dollar.

Europe’s shared currency initially extended a decline as the central bank deferred the delicate decision of how and when to venture the next step toward policy normalization until later this year. It reversed the drop as Draghi said incoming data confirmed the strength of the euro zone’s economy, even as he simultaneously pledged additional stimulus if needed.

Here’s our live blog on the ECB’s policy decision and Draghi’s briefing

The euro’s advance hit stocks in the region, which erased an increase. The greenback edged higher, continuing its recovery from Tuesday’s lowest close in 11 months, while the yen headed for its biggest drop in almost two weeks after Japanese policy makers delayed the time-frame for reaching their inflation target — a sign stimulus will be in place for a while to come. Oil climbed a third day.

And here are the main moves in markets:

Stocks

– The Stoxx Europe 600 Index fell 0.1 percent as of 1:53 p.m. in London.
– The MSCI All-Country World Index rose 0.1 percent, reaching the highest on record with its 10th consecutive advance.
– The U.K.’s FTSE 100 Index gained 0.6 percent to the highest in a month.
Germany’s DAX Index gained 0.4 percent, the largest rise in more than a week.
– The MSCI Emerging Market Index fell 0.1 percent, the first retreat in almost two weeks.

Currencies

– The euro rose 0.4 percent to $1.1564, the strongest in 23 months.
– The British pound fell 0.4 percent to $1.2973.
– The Bloomberg Dollar Spot Index rose 0.1 percent.
– The Japanese yen sank 0.3 percent to 112.26 per dollar, the largest decrease in almost two weeks.

Bonds

– The yield on 10-year Treasuries fell one basis point to 2.26 percent.
– Germany’s 10-year yield rose two basis points to 0.56 percent, the first advance in a week.
– Britain’s 10-year yield rose one basis point to 1.203 percent.

Commodities

– Gold fell 0.1 percent to $1,239.53 an ounce.
– West Texas Intermediate crude rose 0.6 percent to $47.41 a barrel.
– The Bloomberg Commodity Index rose 0.3 percent to the highest in almost eight weeks.

Asia

– The Aussie traded lower as a characteristically volatile monthly jobs report for June showed a surge in full-time employment. It’s the best-performing G-10 currency this year, climbing 10 percent.
– Australia’s S&P/ASX 200 Index gained 0.5 percent and Japan’s Topix Index rose 0.7 percent to close at its highest in nearly two years.

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