U.S. stock futures down, euro firms as Greek deal gets cautious nod

Mon Jul 13, 2015 7:59pm EDT
 
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By Lisa Twaronite

TOKYO (Reuters) - U.S. stock futures edged lower on Tuesday and the euro firmed as investors cautiously waited to see if Greece's conditional bailout agreement would bring to an end that country's debt crisis.

The terms imposed by Athens' international lenders led by Germany in all-night talks at an emergency summit obliged Greece's leftwing Prime Minister Alexis Tsipras to abandon his pledge to end austerity.

Tsipras will face a showdown with members of his own party later on Tuesday, over the agreement under which Greece can get a possible 86 billion euros ($95 billion) over three years if it can satisfy its European partners that it is meeting their conditions.

U.S. stock futures edged lower, with S&P 500 mini futures ESc1 down about 0.1 percent from late U.S. levels, after Wall Street jumped on hopes for the Greece deal. All three major stock indexes ended up more than 1 percent, in what some strategists described as a relief rally.

But some said doubts would remain until the proposal is actually accepted.

"Investors did not like that a Grexit is still on the table if Parliament votes no," managing director at BK Asset Management, said in a note to clients.  "The risk is far less now than a week ago but the fact that it is not eliminated puts pressure on the euro."

The euro last traded at $1.1000 EUR=, nearly flat on the day. Against the yen, it inched up 0.1 percent to 135.88 yen EURJPY=R.

The greenback was buying 123.53 yen JPY=, up about 0.1 percent.   Continued...

 
Traders work on the floor of the New York Stock Exchange shortly after the closing bell in New York, July 13, 2015. REUTERS/Lucas Jackson