Currencies

• EUR/USD The euro recovered some of the ground it lost overnight against the dollar ahead of a widely expected interest-rate increase by the European Central Bank later today.
  • The euro was buying $1.4325 during Asian trading hours, after dropping to $1.4303 in late New York trading.


• USD/JPY The dollar was little changed from yesterday against the yen.
  • The greenback was trading 80.929 yen around 7:30 a.m. London time.


• GBP/USD Sterling continued yesterday's drop after reaching $1.60170 earlier this morning.
  • It was trading at $1.59703 around 7:30 a.m. London time.

Commodities

• Gold rose for a third day as interest-rate increases spurred concern that the global economy may slow and as the European sovereign debt crisis increased demand for the metal as a refuge.
  • Gold for immediate delivery advanced 0.3 percent to $1,532.85 an ounce at 1:36 p.m. in Singapore.
  • The August- delivery contract was 0.3 percent higher at $1,533.20 an ounce.

• Oil rose in New York as investors bet shrinking stockpiles and signs of economic recovery in the U.S. indicated fuel demand is strengthening in the world's biggest crude consumer.
  • American Petroleum Institute said yesterday that inventories dropped 3.2 million barrels last week.
  • Crude for August delivery gained as much as 80 cents to $97.45 a barrel in electronic trading on the New York Mercantile Exchange and was at $97.35 at 12:12 p.m. Singapore time.

Equities

• U.S. stocks rose as gains in transportation and consumer- staple companies overshadowed a slowdown in service-industry growth and China's interest-rate increase.
  • Union Pacific Corp. (UNP) climbed 0.8 percent to lead gains in shipping companies, while Costco Wholesale Corp. (COST) rallied 1.7 percent.
  • The Standard & Poor's 500 Index gained 0.1 percent to 1,339.22 at 4 p.m. in New York.
  • The Dow Jones Industrial Average climbed 56.15 points, or 0.5 percent, to 12,626.02.


• European stocks declined as China raised interest rates and Moody's Investors Service cut Portugal's credit rating to junk.
  • The U.K.'s FTSE 100 lost 0.4 percent.
  • France's CAC 40 Index and Germany's DAX Index retreated 0.1 percent.

• Asian stocks rose as Chinese banks rose after the country raised interest rates.
  • Industrial & Commercial Bank of China Ltd. increased 1.2 percent in Hong Kong, leading banks higher.
  • The MSCI Asia Pacific Index climbed 0.06 point, or less than 0.1 percent, to 137.46 as of 1:46 p.m. in Tokyo.
  • Japan's Nikkei 225 (NKY) Stock Average declined 0.3 percent.
  • Hong Kong's Hang Seng index climbed 0.7 percent.

Sources: Bloomberg, FT