Yen Weakens as Asian Stocks Recover

 
Snapshot: 

        -USD/JPY at 121.39-40; 10-year Treasury yield at 2.235%; U.S. stock futures gain; Nymex at $52.11; gold at $1161.80
        -Watch for: U.S. weekly jobless claims, Bloomberg consumer comfort; IMF world economic outlook; speech from Fed's Lael Brainard; Canada June housing starts, May house price index; deadline for Greek plan; earnings from PepsiCo, Walgreens, PostMedia, Sandvine, Velan
        News: Greek Banks Have Enough Cash to Last Until Monday; China Stocks Make Biggest Daily Gain in Six Years; China Unlikely to Derail Japan Recovery: Abe Adviser
        The yen weakened against its major rivals in Asian trade, with the stock market's recovery in China prompting nervous investors to fly back from the perceived safety of the Japanese currency.
        Elsewhere, the Australian dollar benefited from a better-than-expected labor report, while commodity currencies in general were lifted by firmer oil prices.
        In Europe, the euro was 0.2% lower against the dollar at $1.1046, with the greenback recovering somewhat from Wednesday's selloff after the June Federal Open Market Committee minutes highlighted external risks which could delay a Federal Reserve rate hike.
        U.S. Treasury yields moved slightly higher in early European trade, but turnover was light as investors sat on the sidelines ahead of this weekend's crucial Greek debt meeting.
        The 10-year U.S. Treasury yielded 2.235% and the September contract was 7/32 lower at 127-050.
        The move higher in yields was also helped by comments from San Francisco Fed President Williams, who said a 2015 rate hike was still on the cards.
        A scheduled sale of $13 billion of 30-year paper is ahead.
        Elsewhere, Greek government bond yields continued to push higher, with short-dated bonds hit the hardest.
        Japanese government bonds were weaker as Japanese stocks regained some steam and a sale of 30-year bonds drew little demand.
        U.S. stock futures pointed to a comeback for Wall Street, after a sharp selloff the previous day fueled by global jitters and a suspension of trading on the New York Stock Exchange.
        Futures for the Dow climbed 112 points, or 0.6%, while those for the S&P 500 gained 14.80 points, or 0.7%. Futures for the Nasdaq advanced 33.25 points, or 0.8%.
        Chinese stock markets recovered somewhat, as did equities in Europe, where investors were waiting for Greece to submit a fresh set of reform proposals before a midnight deadline. Greek banks and the Athens stock market remain closed until Monday.
        Greek banks have enough liquidity to get through to at least Monday, the head of the Hellenic Bank Association Louka Katseli said.
        Ahead, investors are looking at the latest jobless-claims figures, a trio of Federal Reserve speakers and earnings from PepsiCo and Walgreens Boots Alliance.
        First up is Minneapolis Fed President Narayana Kocherlakota, who gives a speech on central banks in Frankfurt at 5.45am ET. Fed Governor Lael Brainard will talk about regulatory reform at the Bipartisan Policy Center in Washington at 10.15am ET, followed by a speech by Kansas City Fed President Esther George on the economic outlook, scheduled for 12.30pm ET.
        The only notable report is on weekly jobless claims, due at 8.30am ET. Consensus estimates indicate 277,000 Americans filed for unemployment benefits in the week ended July 4, down slightly from 281,000 the week before, according to FactSet.
        WTI crude was up 0.9% at $52.11 by midday in Europe, while Brent crude was up 0.5% at $57.35.
        Crude oil prices "are being boosted by a strong recovery of the Chinese equity markets," said analysts at Commerzbank. "What is more, hopes are clearly dwindling of any agreement being reached this week in the nuclear negotiations with Iran," making any rapid increase in oil shipments from Iran less likely, they said.
        Offsetting the bulls, however, was the sharp increase in crude oil inventory data released by the U.S. Department of Energy, which "offered little argument in favor of rising oil prices," they said.
        Gold fell 0.2% to $1161.80.
        Greek Banks Have Enough Cash to Last Until Monday
        Greek banks have enough liquidity to get through to at least Monday, the head of the Hellenic Bank Association Louka Katseli said.
        ECB Weidmann: Freeze on Emergency Loans to Greece Should Continue Until Deal Reached
        European Central Bank Governing Council member Jens Weidmann said Thursday that the ECB should continue to freeze emergency loans to Greece and capital controls should stay in place until the embattled country can reach a deal with its international creditors.
        New Tensions Emerge in Iran Nuclear Talks
        Heated exchanges took place among foreign ministers as Washington and Tehran struggled to overcome remaining hurdles to a final agreement over Tehran's nuclear program.
        U.S., Ukraine Weigh Expansion of American Training Program
        U.S. and Ukrainian officials are making plans to expand the training of Ukrainian military forces at a training base in the western part of the country, officials said Wednesday.
        FBI Director Says OPM Breach Was Enormous
        Federal Bureau of Investigation Director James Comey said the White House soon will announce that "millions and millions" of government background investigation records were stolen by hackers.
        End-of-Life Talk Proposed as New Medicare Benefit
        The federal government is proposing to pay health-care providers for talking to Medicare beneficiaries about end-of-life care after mounting calls for a better approach to conversations about dying that can both save costs and improve patient care.
        House Backs Rewrite of No Child Left Behind Law
        The House on Wednesday narrowly endorsed a sweeping rewrite of the No Child Left Behind education law, passing 218-213 a measure aimed at significantly reducing the federal government's role in K-12 education.
        China Unlikely to Derail Japan Recovery: Abe Adviser
        Japan's economic recovery will likely withstand the bursting of China's stock market bubble and additional policy action isn't necessary for now, a top adviser to Shinzo Abe says.
        Alfa, Harbour Energy Drop Bid for Pacific Rubiales
        Mexican conglomerate Alfa and U.S.-based energy investor Harbour Energy said they were pulling out of a deal to acquire Canadian oil company Pacific Rubiales Energy.
        Alcoa Ekes Out Profit Despite Aluminum Glut
        Alcoa reported a slight increase in profit, thanks to its strong aerospace and automotive divisions that narrowly made up for a global aluminum glut that continues to depress prices.
        Write to Riva Gold at riva.gold@wsj.com @GoldRiva
        (END) Dow Jones Newswires
        July 09, 2015 06:23 ET (10:23 GMT)

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