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The euro rebounded from an 11-year low and European equities rose amid speculation fallout from the election of the anti-austerity Syriza party in Greece will be contained. U.S. stocks fluctuated, as energy producers advanced with oil to offset a drop in technology shares.
The Standard & Poor’s 500 Index declined less than 0.1 percent at 11:45 a.m. in New York, following the gauge’s first weekly gain this year. The Stoxx Europe 600 Index advanced 0.6 percent to extend a seven-year high on Friday. Europe’s shared currency strengthened 0.7 percent to $1.1285. Greek stocks fell with bonds. The yield on 10-year Treasury notes rose three basis points to 1.82 percent. The ruble tumbled 2.3 percent as fighting in Ukraine spread. Oil rose after OPEC’s secretary general said insufficient investment could push prices to $200 a barrel.
The New York Stock Exchange plans to operate on a normal schedule on Monday and Tuesday amid forecasts for a blizzard that may dump as much as two feet of snow from New York to Boston. Greek Prime Minister-elect Alexis Tsipras’ mandate is now to confront the nation’s program of austerity, imposed in return for pledges of 240 billion euros in aid since May 2010. German business confidence rose for a third month as falling energy costs and anticipation of more stimulus helped lift optimism about the economy.
The S&P 500 rallied 1.6 percent last week after European Central Bank President Mario Draghisaid it plans to buy up to 1.14 trillion euros ($1.28 trillion) of private and public securities.
The Greek elections “infused a little bit more risk into the market, that’s why we’ve pulled back,”Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “More people are focusing on a pretty busy earnings calendar this week and the Fed commentary on Wednesday. Those are going to be the much bigger focus for traders.” Microsoft Corp. and Texas Instruments Inc. are among companies reporting earnings today. United Technologies Corp. changed its plans and will release results after the close of trading today instead of tomorrow morning.
China, a close trading partner of Greece and the EU's second-biggest trading partner behind the US, is believed to largely remain impervious to any direct impact of the victory Syriza Party. But increased uncertainty in the Greek economy may have an impact on China's investments in Greece, Xu Gao, the Beijing-based chief economist at China Everbright Securities, told the Global Times on Monday. Accords worth an estimated total of 4.7 billion euros in fields such as energy, shipping and infrastructure were signed during Chinese Premier Li Keqiang's visit to Greece in 2014. There are concerns that the eurozone may risk a potential breakup if Greece's new leadership eventually ends austerity measures, because the global financial market would take a big hit, Tang Jianwei, a senior macroeconomic analyst at Bank of Communications in Shanghai, told the Global Times. He explained that China is likely to see its foreign exchange reserves, an amount of which are euro-denominated, affected. By the end of December 2014, China's foreign reserves, the world's largest, stood at $3.84 trillion, according to the latest data from China's central bank.
A breakdown of the reserves by currency has yet to be revealed by the central bank, but it is estimated that a quarter are in euros.
The Dubai Financial Market Index slid 3.6 percent, the most this year, and Abu Dhabi’s benchmark gauge lost 0.8 percent. Saudi Arabia’s Tadawul All Share Index rose 0.7 percent trading resumed following the death of King Abdullah on Jan. 23. The Shanghai Composite Index climbed 0.9 percent to the highest close since August 2009, with trading volumes 23 percent less than the 30-day average, according to data compiled by Bloomberg. The Hang Seng China Enterprises Index of mainland companies listed in Hong Kong dropped 0.3 percent, ending a four-day rally.
Commodities have fallen 3.6 percent this month, heading for their first January decline in five years amid surging supplies of crude oil and slowing global economic growth. Copper gained 0.3 percent after sliding more than 3 percent to the weakest since July 2009. Gold dropped 0.7 percent to $1,283.80 an ounce and silver declined 0.9 percent. U.S. natural gas futures fell 3.2 percent to $2.864 per million British thermal units in electronic trading on the New York Mercantile Exchange.
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