EUR/USD Bounced Strongly Off 1.11 After Greek Vote

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.

Bloomberg

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