US stocks followed European equities higher, while Treasuries fell with German bunds on speculation officials will break an impasse over a Greek bailout. The Standard and Poor’s 500 Index rose 0.6 per cent at 9:32 a.m. in New York, 0.4 per cent below a closing record. The Stoxx Europe 600 Index jumped 1.9 per cent, while a guage of emerging- market stocks added 1.3 per cent.
Yields on 10-year Treasury notes rose seven basis points to 2.33 per cent and Germany’s increased to 0.86 per cent.
A surge in corporate merger activity also boosted equities in Europe and the US. “The risk-on mood is driving markets today, not only in bonds but also in equities,” said Patrick Jacq, a senior fixed- income strategist at BNP Paribas SA in Paris. “Clearly the market is playing a positive outcome. But this doesn’t mean we’re going to see an agreement. As long as we don’t have an official agreement between Greece and its creditors the situation remains vulnerable.”
Greek plan
JPMorgan Chase and Co. said Greece being ejected from the euro probably won't rock world markets if the sides fail to reach an agreement and the country defaults on debt owed to the International Monetary Fund.
Banks led Greece's ASE Index up 5 per cent for the biggest gain among western-European markets. The European Central Bank also approved emergency funding for Greek lenders, said a person familiar with the matter. Deal activity added to equity gains.
Williams Cos. surged after rejecting a $48 billion stock-based takeover offer from pipeline magnate Kelcy Warren. Cigna Corp. jumped after rejecting Anthem Inc.'s $47 billion takeover bid. The SandP 500 turned in the best week since April, rising 0.8 per cent as Fed Chair Janet Yellen signaled the central bank won't be raising rates quickly as officials hold out for more decisive evidence of an economic rebound. Data Monday is forecast to show sales of existing homes rebounded in May, after a decline the previous month. Investors and the Fed will also assess reports this week on durable goods orders, first-quarter economic growth, personal income and spending and consumer sentiment.
Bloomberg
