Gold rose nearly 2 percent to $1,217.60 an ounce in Europe on Tuesday after a ratings agency downgrade of Portugal knocked the euro, boosting the metal's appeal as a hedge against currency market volatility.
Stock index futures pointed to a rise of nearly one percent on Tuesday after better-than-expected results from Alcoa Inc and CSX Corp gave a promising start to the earnings season.
Greece passed its first borrowing test on Tuesday since a giant EU/IMF funding deal in May, sending bank stocks and the euro higher after it easily sold 1.625 billion euros ($2.03 billion) of 6-month T-bills.
The debt-ridden country managed to get market funding at a slightly cheaper cost than the 5.0 percent it pays to borrow under the 110 billion euro loan that the European Union and International Monetary Fund put in place to calm a crisis that has shaken the euro zone.
Moody's Investor Service cut Portugal's debt rating by two notches on Tuesday, saying its growth prospects were weak and it might need new austerity measures next year to hit tough fiscal targets.
A leading EU official on Tuesday urged full disclosure on how the region's banks perform in stress tests, but sources said the bloc's finance ministers remained divided on what data should be published.
Stock index futures were higher on Tuesday after better-than-expected results from Alcoa Inc and CSX Corp gave a promising start to the earnings season.
The euro pared losses on Tuesday after a smooth Greek treasury bill auction offset the negative effects of an earlier ratings downgrade on Portugal.
Greece's Public Debt Management Agency (PDMA) sold 1.625 billion euros ($2.03 billion) of 6-month T-bills on Tuesday at a cheaper cost than it pays to borrow under its 110 billion euro EU/IMF rescue fund, and marking its first debt auction since the backstop was agreed in May.
Last week, Commodity Online had reported that several central banks had pawned their gold reserves to the Bank for International Settlements (BIS) to raise cash and this may impact the gold market in the coming days.
Stock index futures were higher on Tuesday after better-than-expected results from Alcoa Inc and CSX Corp gave a promising start to the earnings season.
The euro recovered on Tuesday after Greece successfully returned to capital markets for the first time since late April, while global equities advanced after Alcoa delivered a strong start to the earnings season.
The euro fell while Bund futures jumped on Tuesday as ratings firm Moody's cut Portugal's rating to A1 with a stable outlook.
The euro fell on Tuesday after a two-notch downgrade of Portugal's sovereign debt rating and ahead of Greece's return to capital markets for the first time since late April.
Europe's banking stress test included a haircut on German sovereign debt under certain conditions in its worst scenario, a German magazine reported.
Gold fell below $1,200 an ounce on Thursday, nearing recent six-week lows, as growing optimism over the global economy limited investor interest in perceived safe-haven assets, although consumers helped contain losses.
Gold held above $1,200 an ounce on Thursday, having recovered from six-week lows after consumers were enticed back into the market, although gains were likely to be tempered by improving optimism over the global economy.
In an effort to reassure financial markets about the health of the European Union's banking system, the bloc's countries will stress-test a large number of their banks and publish the results.
Europe listed 91 banks taking part in financial stress tests -- including many regional banks where markets suspect most of the sore spots are -- as it seeks to restore confidence in the sector.
Stress tests on European banks need to mark down the value of Greek government debt by about 16 percent, sources said, as regulators haggled over how much detail to reveal about the health checks.
The stress tests for European banks will not include a haircut on German sovereign bonds, two banking sources in Germany told Reuters on Wednesday.
An eagerly-awaited submarine cable linking West Africa to Europe has gone live, paving the way for cheaper and more reliable internet access in one of the world's fastest-growing telecoms markets, its operators said on Friday.
Global carmakers are braced for a slide in second half sales as scrappage schemes are phased out and cautious consumers pull back from big-ticket buys in the face of economic uncertainty.
The International Monetary Fund is working to develop new lending instruments for economies hit by crises that are not of their own making, IMF Managing Director Dominique Strauss-Kahn said on Tuesday.
