Asia stocks ruffled by Greece crunch, Fed views; Europe up
Source: AP-Excite
By YOUKYUNG LEE
SEOUL, South Korea (AP) — Asian stock markets were ruffled Wednesday by Greece's impending cash crunch and expectations the Federal Reserve will raise interest rates this year for the first time in almost a decade. But Europe and U.S. futures traded higher.
KEEPING SCORE: Europe bounced back from the previous session's losses. Britain's FTSE 100 rose 0.7 percent to 6,996.01 and Germany's DAX added 0.3 percent to 11,666.36. France's CAC 40 advanced 0.7 percent to 5,117.55. Futures augured a tepid start for Wall Street. S&P 500 futures rose 0.1 percent and Dow futures also edged up 0.1 percent.
STRONG GREENBACK: The U.S. dollar extended gains against some currencies after a surge the previous day, buoyed by signs of improvement in the U.S. economy such as better-than-expected home sales, durable goods and consumer confidence. Fed Chair Janet Yellen implied that an interest rate hike is likely within this year, further pushing up the greenback. The Federal Reserve Bank of Atlanta said on Tuesday that it raised its second-quarter growth forecast for the U.S. economy to 0.8 percent from 0.7 percent.
ANALYST'S TAKE: After the "Federal Reserve Bank of Atlanta upgraded its gross domestic product forecast for the second quarter, traders quickly upped their bets on the prospects of the Fed tightening this year," said Stephen Innes, senior trader at OANDA Asia Pacific. "Investors are mulling the possibility of a Greek default and the changing political landscape in Spain. Anti-austerity parties are gaining traction across the eurozone's periphery, and that's driving risk-off sentiment in currency markets that are reeling from the Greek drama," Innes said.
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Specialist Matthew Cheslock, left, works on the floor of the New York Stock Exchange, Tuesday, May 26, 2015. Stocks are opening lower on Wall Street as traders return from the Memorial Day holiday in the U.S. (AP Photo/Richard Drew)
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