Euro falls vs. dollar on Greece, while metals prices tumble

Tue Jul 7, 2015 6:22pm EDT
 
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By Caroline Valetkevitch

NEW YORK (Reuters) - Copper and other metals plunged on Tuesday as the euro sank to a five-week low against the dollar after the European Central Bank tightened lending conditions for Greek banks and as the collapse in equities prices in China drove fears about the country's economy.

U.S. stocks ended higher, taking heart from a stabilization in oil prices, while a global stock index fell as European shares extended losses on worries about Greece's ability to secure fresh aid.

Investor worries about Greece's debt crisis and the country's possible exit from the euro zone also pushed benchmark U.S. 10-year yields to five-week lows.

"People woke up to the fact this morning about the risks to the global market, and Treasuries are the place to be for safety and liquidity," said Stanley Sun, an interest rate strategist at Nomura Securities International in New York.

Greek banks may soon run out of cash. Greek Prime Minister Alexis Tsipras launched another bid to win fresh aid at an emergency euro zone summit, but German Chancellor Angela Merkel said there was still no basis for reopening negotiations.

Failure to reach a deal would make it more likely Greece will drop out of the euro.

The Dow Jones industrial average rose 93.33 points, or 0.53 percent, to end at 17,776.91. The S&P 500 gained 12.58 points, or 0.61 percent, to 2,081.34 after briefly falling below its 200-day moving average. The Nasdaq Composite added 5.52 points, or 0.11 percent, to 4,997.46.

Nine of the 10 major S&P 500 sectors finished higher, with the utilities index up 2.48 percent.   Continued...

 
Traders work on the floor of the New York Stock Exchange July 6, 2015. REUTERS/Brendan McDermid