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 European markets opened largely subdued, however, as disappointing
German purchasing manager data (PMI) offset an improvement in
France. That left the region's main bourses <0#.INDEXE> down as much
as 0.6 percent and investors preferring bonds.
The euro gained to $1.1150. Top euro zone leaders will meet later in
Latvia, where Greek premier Alexis Tsipras hopes the broad outline
of a cash-for-reforms deal will be accepted, staving off a default.
Worries over Athens' finances have escalated this year as the
country's new government has pushed back on austerity imposed as
part of its bailout packages.
"I think it is coming to a head," said Alvin Tan, a currency
strategist at Societe Generale in London. "It looks like it will be
difficult for Greece to make it through June without a new cash
disbursement, so I think we are coming to the point where a deal is
needed very soon, probably within the next two weeks."
The dollar <.DXY> lost ground as minutes from the Federal Reserve's
April meeting bolstered the view that the Fed is not ready to raise
U.S. rates. Its policymakers thought a move in June would be
premature, leading traders to push back expectations for a rate
increase to the turn of the year.
The European Central Bank, which recently started a 1 trillion-euro
stimulus program, will release the minutes of its most recent
meeting at 1130 GMT. The meeting was held before this month's bond
sell-off, so the main focus is likely to be whether the ECB is
concerned about funding Greece's banks.
FRAGILE CHINA
MSCI's broadest index of Asia-Pacific shares outside Japan ended
little changed in Asian trading.
South Korean, Hong Kong and Malaysian shares slipped, while
Australian stocks jumped on bargain hunting and emerging Asian
currencies took advantage of the softer dollar.
Tokyo's Nikkei ended almost flat after touching a 15-year high.
High-flying Chinese shares climbed another 1.2 percent as the third
straight monthly contraction in Chinese factory activity bolstered
stimulus bets.
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"Under the current environment, any excuse seems good enough to
cause a rally," wrote Gerry Alfonso, director of Shenwan Hongyuan
Securities Co in Shanghai.
The recent surge in euro zone bond yields has stalled this week,
partly in response to ECB policymakers saying the central bank would
ramp up its bond buying for the next two months.
German 10-year yields, the benchmark for euro zone borrowing costs,
were 1 basis point lower on Thursday at 0.62 percent, down from 2015
highs of 0.80 percent reached earlier this month.
Italian, Spanish and Portuguese 10-year yields were 3-4 bps lower at
1.82 percent, 1.76 percent and 2.40 percent, respectively.
In commodities, U.S. crude <CLc1> rose 17 cents to $59.15 a barrel
as a rebound following days of losses continued. Oil prices had
bounced on Wednesday after a five-day decline, but a large supply
overhang and concerns over a strong dollar capped gains. [O/R]
Hopes of future China stimulus helped lift copper of three-week low.
Gold held in a range near $1,200 an ounce.
(Additional reporting by Samuel Shen and Pete Sweeney in Shanghai;
Editing by Larry King)
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