Data lift US stocks, Greece weighs on euro

The euro pared losses and bond prices slid yesterday after comments by German Chancellor Angela Merkel bolstered hopes that Greece would remain in the Eurozone, while US stocks rose on encouraging US economic data. US industrial production posted its fastest growth in over a year in April and a rebound in groundbreaking for new US homes last month suggested a recovery in US housing was gaining some traction, bolstering US investor sentiment that has been heavily hit by news about Greece. Industrial output grew 1.1 per cent, the most since December 2010 and nearly twice the pace expected by analysts polled by Reuters. Housing starts increased 2.6 per cent to a seasonally adjusted annual rate of 717,000 units, while March's starts were revised upward. "Nice to see some turnaround. Ideally supply is getting more in line with demand, and low [interest] rates may be finally helping the turnaround," David Carter, chief investment officer at Lenox Wealth Advisors in New York, said about housing. "However, this housing story is much smaller than news out of Greece and might get easily forgotten," Carter said. Stocks on Wall Street opened higher, while equity markets in Europe pared much of an early sell-off. The Dow Jones industrial average was up 38.52 points, or 0.30 per cent, at 12,670.52. The Standard & Poor's 500 Index was up 6.00 points, or 0.45 per cent, at 1,336.66. The Nasdaq Composite Index was up 10.66 points, or 0.37 per cent, at 2,904.42. The FTSEurofirst 300 index fell 0.2 per cent to 997.22. MSCI's global equity index was down 0.4 per cent to 306.53. Prices on German government Bund bond futures fell to a session low. Bund futures fell to 143.11, and the benchmark 10-year US Treasury note was down 11/32 in price to yield 1.81 per cent. Both Bunds and US Treasuries have safe-haven appeal and their prices rise when investors become jittery. The euro climbed to a session high against the dollar expectations that Germany and France will act together to keep Greece in the Eurozone after Merkel met French President Francois Hollande on Tuesday. The euro pared losses to trade near break-even at $1.2725.