Currencies

• EUR/USD The dollar snapped a two-day loss against the euro before data forecast to show initial jobless claims dropped and retail sales rose.
  • The greenback was at $1.4401 per euro from $1.4409.


• USD/JPY The yen maintained losses against most of its major counterparts as signs the global economic recovery is picking up supporting stocks and commodities, damping demand for Japan's currency as a refuge.
  • The dollar was little changed at 80.87 yen around 5 a.m. London time after touching 81.09.


• GBP/USD The pound weakened versus the dollar and the euro on speculation the Bank of England will lower its economic growth forecasts when it releases its inflation report tomorrow, making higher interest rates less likely.
  • The Bank of England left its key rate at a record low 0.5 percent on May 5. Governor Mervyn King has indicated he favors keeping borrowing costs on hold even as inflation accelerates at twice the bank's 2 percent limit.
  • The pound appreciated 0.3 percent to 87.26 pence per euro yesterday after reaching 87.21 pence.

Commodities

• Gold and silver extended their advance as faster-than-forecast inflation in China and a resurgence of Europe's sovereign-debt crisis increased demand for precious metals as a store of value.
  • China's consumer prices rose 5.3 percent in April from a year earlier, exceeding the government's full-year target for a fourth month.
  • Standard & Poor's this week downgraded Greece's credit rating for the fourth time since April 2010, signaling that the region's debt crisis is escalating.
  • Immediate-delivery gold gained as much as 0.5 percent to $1,523.82 per ounce, climbing for a fourth day after last week's 4.4 percent fall and traded at $1,522.95 at 11:05 a.m. in Singapore.

• Oil dropped as much as 0.3 percent, giving up earlier gains, after China reported inflation which exceeded economist estimates and the government's target.
  • Crude was down 26 cents at $103.62 a barrel at 12:43 p.m. Sydney time, after earlier rising as high as $104.60.

Equities

• U.S. stocks rose for a third day as higher-than-estimated profit forecasts and Microsoft Corp.'s purchase of Skype Technologies SA boosted optimism that earnings and takeovers will keep fueling the rally.
  • The S&P 500 gained 0.8 percent to 1,357.16 at 4 p.m. in New York yesterday.
  • The Dow Jones Industrial Average advanced 75.68 points, or 0.6 percent, to 12,760.36 yesterday.


• European stocks climbed yesterday as InterContinental Hotels Group Plc and Deutsche Post AG posted increased earnings, helping to reassure investors that the global economic recovery remains intact.
  • InterContinental Hotels surged 3.9 percent after reporting a 28 percent jump in first-quarter profit as travel recovered in the Americas and Deutsche Post gained 1.3 percent.
  • The U.K.'s FTSE 100 Index gained 1.3 percent to 6,018.89.
  • Germany's DAX Index advanced 1.2 percent to 7,501.52 and France's CAC 40 Index added 1.1 percent to 4,052.51.


• Asian stocks rose after oil and metal prices advanced yesterday. Japanese shares gained as companies reported improving earnings and a weaker yen boosted exporters' prospects.
  • Japan's Nikkei 225 Stock Average rose 0.4 percent to 9,864.26.
  • The MSCI Asia Pacific Index rose 0.6 percent, the most in more than a week, to 138.72 as of 2:22 p.m. in Tokyo.
  • In Hong Kong, the Hang Seng Index, which was shut yesterday, climbed 0.3, while China's Shanghai Composite Index was little changed.

Sources: Bloomberg, FT