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GLOBAL MARKETS-Euro rises on ECB lending talk, stocks mixed
November 18, 2011 / 3:51 PM / 6 years ago

GLOBAL MARKETS-Euro rises on ECB lending talk, stocks mixed

* EU officials have discussed idea of ECB lending to IMF
    * World stocks slip, Wall St indexes mixed
    * Treasuries prices fall as Italian yields ease modestly

    By Walter Brandimarte
    Nov 18 (Reuters) - The euro gained on Friday on hopes that
the European Central Bank could get involved in a plan to help
struggling euro zone countries but world stocks fell as many
investors continued to fear the spreading of the region's debt
crisis into core European economies.
    U.S. stocks traded slightly higher early in the morning on
reports that the ECB is considering lending to the
International Monetary Fund to bail out troubled euro zone
economies.
    U.S. Treasury prices fell as expectations of greater ECB
involvement in seeking a solution to the crisis reduced their
safe-haven appeal.
    "The ECB would have to be involved in any potential
solution (for the crisis) for it to be credible, so I would
expect that to give the euro a bit of a lift," said Tom
Levinson, a foreign exchange strategist at ING.
    "Whether it will persist or not is highly debatable. This
is a knee-jerk euro reaction and I think it will struggle to
hold around this level," he added.
    The euro zone common currency rose 0.4 percent to
$1.3509, pulling away from a five-week low of $1.3420 struck on
Thursday.
    Key Wall Street indexes were mixed. The Dow Jones
industrial average was up 61.53 points, or 0.52 percent,
at 11,832.26. The Standard & Poor's 500 Index was up
4.15 points, or 0.34 percent, at 1,220.28. The Nasdaq Composite
Index was down 1.50 points, or 0.06 percent, at
2,586.49.
    In Europe the FTSEurofirst 300 fell 0.5 percent.
World stocks, measured by the MSCI All-Country World Index , declined 0.4 percent.
    U.S. crude oil was off less than 0.1 percent at
$98.76 per barrel.
    Benchmark 10-year U.S. Treasury notes fell
16/32, sending their yield up to 2.02 percent, as a decline in
Italian government bond yields reduced their safe-haven bid.
    Yields on Italian 10-year bonds eased to 6.7
percent but stayed near levels investors consider
unsustainable.

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