Dollar Softens; Markets Eye Greece

 
Snapshot: 

        -USD/JPY at 123.39-40; 10-year Treasury yield at 2.40%; U.S. stock futures mostly flat; Nymex at $59.43; gold at $1173.40
        -Watch for: University of Michigan Survey of Consumers; European Union summit continues; Kansas Fed's George speech
        News: French Chemical Factory Hit by Terror Attack; Tsipras to Meet With Merkel, Hollande; China's Market Selloff Accelerates
        The dollar softened against a range of currencies Friday including the euro and sterling after Greek talks were put off.
        Currencies over the weekend will driven primarily by whether or not Greece can reach a deal on its debt. Greek Prime Minister Alexis Tsipras is to hold a meeting Friday with German Chancellor Angela Merkel and French President Francois Hollande, a Greek official said, a day before potentially decisive talks on the country's bailout.
        European finance chiefs pushed off talks to seal a Greek bailout deal until the weekend after ending another meeting without agreement, leaving only days to keep Athens from defaulting on a loan payment early next week.
        Meanwhile, the U.S. dollar has been bought on dips over the past few days due to eurozone debt worries and improving U.S. economic data which increase the odds of a rate rise. The rise in consumer spending and better-than-expected jobless claims data supported the view that September might be a good time for the Federal Reserve to raise interest rates, adding to the fundamental argument for a stronger U.S. dollar.
        U.S. Treasurys were little changed in London despite a sharp sell-off in Chinese stocks and a 1% fall in European stock markets.
        The 10-year U.S. Treasury yielded 2.40%, while the September contract was 1/32 lower at 125-175.
        Eurozone bond markets opened the session little changed as dealers and investors waited for the outcome of the eurozone finance ministers meeting. Safe-haven Bund yields nudged a basis point lower to 0.845% while Italian and Spanish 10-year debt yielded 2.115% and 2.09%, little changed on Thursday's close. Greek debt also little moved with the 2-year quoted at 21.27% and the 10-year at 10.72%.
        After a volatile trading week, U.S. stock futures struggled for direction early on Friday, with investors cautious of making any big moves ahead of consumer sentiment data and another "make it or break it" meeting on Greece over the weekend.
        Futures for the Dow inched 6 points higher, while those for the S&P 500 index slipped 0.40 points and those for the Nasdaq 100 index dropped 5 points.
        In the last minutes of Friday's trade, stock trading volumes are expected to surge as the Russell indexes go through their annual routine of adding and removing stocks.
        Investors are also waiting for the final reading on consumer sentiment in June. The report is forecast to confirm the flash estimate of 94.6, according to economists polled by MarketWatch.
        Among Fed speakers, Kansas City Fed President Esther George will give a speech on the payments system at 12:45 p.m. Eastern. George is not a voting member of the policy-setting committee this year.
        In corporate news, Nike said its sales rose 4.8% as the athletic-gear maker recorded revenue growth across most of its geographic markets and product lines during the quarter ended in May.
        However, continued pressure from a stronger dollar again weighed on revenue growth and future orders. Shares rose 2.6% to $107.95 in after-hours trading Thursday as earnings beat analysts' expectations.
        AT&T plans to invest around $3 billion in Mexico to make its high-speed mobile Internet service available to 100 million people by the end of 2018, the U.S. telecommunications company said Thursday.
        Valeant Pharmaceuticals has made a preliminary approach to buy animal-health giant Zoetis, people familiar with the matter said, in a move that could presage a big deal in yet another corner of the health-care industry.
        Canadian mining giant Potash Corporation of Saskatchewan offered to take over German rival K+S in a deal that, if successful, would create a company capable of dominating a big chunk of the global market for potash.
        Oil prices fell in Europe on continuing concerns about oversupply as investors kept an eye on Greek talks and the looming deadline for Iran's nuclear deal.
        "The market appears to have been set on cruise control, but the road remains rife with hazards," said analysts at Barclays. "Prices face downward pressure for the remainder of the year on resilient oil supplies."
        Ahead, "expect volatility on any news from the negotiations in the coming days, " said Michael Poulsen at Global Risk Management.
        Brent crude for August delivery fell 0.3% to $63 a barrel on London's ICE Futures exchange. On the NYME, WTI futures for July were trading down 0.4% at $59.43 a barrel.
        Spot gold was 0.1% higher at $1173.40 on a softer dollar.
        French Chemical Factory Targeted by Suspected Terror Attack, Interior Ministry Says
        A chemical factory in southeastern France has been targeted in a suspected terrorist attack, the Interior Ministry said Friday.
        Greece's Tsipras to Meet With Merkel, Hollande Ahead of Crunch Bailout Meeting
        Greek Prime Minister Alexis Tsipras is to hold a meeting Friday with German Chancellor Angela Merkel and French President Francois Hollande, a Greek official said, a day before potentially decisive talks on the country's bailout.
        Iran Leader's Terms Complicate Talks as Deadine Nears
        Strict terms set by Iran's Supreme Leader Ayatollah Ali Khamenei on his country's nuclear program this week rattled Western governments and staunch supporters of the White House's negotiations with Tehran just days ahead of a diplomatic deadline.
        NATO Commander Says Putin Not Done in Eastern Ukraine
        The top military officer for the North Atlantic Treaty Organization said he sees evidence that Russia is building an effective supply system to strengthen its ability to conduct military operations inside Ukraine, and is watching for further moves by Moscow to consolidate its hold on the eastern part of the country.
        China's Market Selloff Accelerates
        China's stock markets plunged, with some indexes entering bear territory, a sharp turnaround after a year of strong gains.
        State Department Report Criticizes Iran, Cuba Over Rights
        Human rights violations in Iran and Cuba continue to pose concerns, a State Department report said, criticizing practices in two countries that top President Barack Obama's global engagement agenda.
        Paris Confronts Airbnb's Rapid Growth
        Officials in the City of Light brag that Paris is Airbnb's biggest market, but have ramped up housing inspections after complaints that tourists are pushing residents out of the city center.
        Eurozone Private Lending Rises
        Lending to the eurozone's private sector rose at its fastest rate in more than three years in May, according to a report from the European Central Bank, suggesting the region's economic recovery is beginning to broaden out.
        Write to Riva Gold at riva.gold@wsj.com @GoldRiva
        (END) Dow Jones Newswires

        June 26, 2015 06:22 ET (10:22 GMT)

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