European stocks up on Greek hopes; U.S. awaits Fed
By Chuck Mikolajczak
NEW YORK (Reuters) - Stocks in Europe marched higher to close at multi-year highs on Wednesday as investors brushed off uncertainty over Greece's negotiations with its creditors.
Wall Street, meanwhile, was held in check ahead of the release of minutes of the Federal Reserve's January meeting at 2 p.m. (1900 GMT) as investors await clues on the U.S. central bank's plans to raise interest rates.
The Greek government said it will submit a request to extend a "loan agreement" for up to six months on Thursday but Germany said no such deal is on the table and Greece must stick to the terms of its bailout.
European Central Bank policymakers, meanwhile, debated whether to allow more emergency funding for Greek banks, with Germany opposing extra funding, people familiar with the matter said.
"A lot of people are focused on the Fed minutes but that issue is kind of interwoven with the situation in Europe," said David Lebovitz, global market strategist at J.P. Morgan Funds in New York.
"The massive amounts of monetary stimulus that have been deployed abroad are continuing to put upward pressure on the U.S. dollar, and I think that will make it hard for the Fed to raise rates."
Producer price data for January indicated U.S. inflation remained subdued, which could boost the argument against a rate hike by the Fed, while other economic data pointed to a slowly accelerating U.S. economy.
The data caused the yield on benchmark 10-year U.S. Treasuries to retreat after touching its highest since the first trading day of the year. Continued...