February 6, 2012 / 8:26 PM / 8 years ago

GLOBAL MARKETS-Stocks, euro stall alongside Greek deal

* Greek debt tension threatens rally in risk assets
    * Global stocks could fall for the first session in five

    By Rodrigo Campos	
    NEW YORK, Feb 6 (Reuters) - Concern that Greece might
not accept the terms of a proposed new bailout deal brought a
rally in global shares to a halt on Monday, while the euro pared
earlier losses as some shorts covered their bets.	
    U.S. stocks edged lower, tracking European equities, while a
gauge of global shares dipped slightly after four straight
sessions of gains. Declines were not enough to derail an uptrend
of five consecutive weeks of gains on both the U.S. benchmark
S&P 500 index and global stocks measured by MSCI.	
    So far this year, the S&P is up 6.8 percent and global
stocks have gained 8.6 percent.	
    The Greek debt crisis remained a concern to markets as 
political leaders had not agreed to accept unpopular public wage
cuts and other measures to qualify for a new bailout from the
European Union and the International Monetary Fund. Greece needs
the cash by March to meet big debt repayments and avoid an
unruly default. 	
    The slow progress to sort out Greece's cash problems has
angered the country's European partners and undermined investor
confidence across markets.	
    "We've had an ultra-strong move, and I think it would be
prudent to take some hedges to protect yourself," said Randy
Bateman, chief investment officer of Huntington Asset Management
in Columbus, Ohio. "There will be more negativity if the (Greek)
deal doesn't go through."	
    In afternoon trading in New York, the Dow Jones industrial
average dropped 41.81 points, or 0.33 percent, to
12,820.42. The S&P 500 Index fell 2.80 points, or 0.21
percent, to 1,342.10. The Nasdaq Composite lost 6.50
points, or 0.22 percent, to 2,899.16.	
    The FTSEurofirst 300 index of top European shares
closed down 0.14 percent. Global stocks measured by MSCI
 dipped less than 0.1 percent.	
    The euro pared some losses as its earlier decline
reached key technical levels, prompting investors to cover their
short positions. The single currency fell to a low of $1.3026
according to Reuters data and was last down 0.2 percent at
    "Headlines out of Europe are affecting sentiment on the
euro. Earlier, we had hit stop losses in the euro and we saw it
trim some losses. But it's more of the same," said Brian Dolan,
chief currency strategist at Forex.com, as investors still
awaited the outcome on Greece's debt deal.	
    The underlying sentiment in markets remained positive due to
strong January economic data from the United States, China and
Germany. An easier monetary stance from the world's major
central banks that appears set to continue at key meetings this
week also supports investor sentiment. 	
    Data on German industrial goods orders, released on Monday,
extended the run of good data. A better-than-expected 1.7
percent rise for December was propelled by demand from outside
the euro zone, which more than made up for a drop in orders from
within the currency bloc.	
    U.S. Treasuries prices edged higher highlighting the
safe-haven appeal of U.S. debt.	
    In light, choppy trading, the benchmark 10-year U.S.
Treasury note was up 8/32, with the yield at 1.896
0 : 0
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