Euro, Asian Stocks Rise After Ireland Seeks Bank Bailout

The euro, the U.S. stock and futures the index rose after Ireland international agreed a rescue. Ireland yields 10-year bond fell to its lowest level in almost two weeks and reduced the cost of insuring government debt.

The euro strengthened 0.5 percent against the dollar and 0.3 percent on yen at 10:25 am in London. The MSCI World Index added 0.4 percent as 500 of Standard & Poor's Index. The extra yield investors demand to hold debt in 10 years Irish Landmark German bonds fell 15 basis points, and credit-default swaps linked to the debt of Ireland fell 28.5 basis points. U.S. performance 10 years won a basis point to 2.88 percent before the sale of the Treasury of $ 99 billion of notes this week. Commodities rallied, with oil jumping by 1.1 percent.

Ireland became a member of the euro in the second to seek the recovery of the European Union and the International Monetary Fund, preventing a run on its banks. Today's demonstration has been limited by the concern of the debt crisis can not be greater. While bond yields retreated from Portugal, the cost of protection against default on the country's debt increases.

"The big question is whether this new bailout plan will act as a firewall and an end to the contagion effect," wrote Gary Jenkins, head of fixed income developments Securities Ltd. in London, in a report released today. "In the short term, the answer may be yes. Could it be that the final decision regarding a mechanism of permanent debt crisis will be the next most important catalyst for determining the direction of yields."

Ireland, Portugal

The euro rose against 11 of its 16 most actively traded peers, while the dollar index, which tracks U.S. currency against six trading partners, fell 0.5 percent, slid for the fourth consecutive day.

The performance of Irish 10-year bond fell 22 basis points to 8.103 percent, the lowest level since Nov. 9 on a closing basis. The performance of the Portuguese equivalent security maturity decreased eight basis points to 6.87 percent. Contracts in Portugal rose five basis points to 422.5, according to CMA, a data provider. The Markit iTraxx Crossover Index of 50 European companies swaps mostly junk rating fell 9 basis points to 448, the prices of Markit Group Ltd. show.

The Stoxx Europe 600 index gained 0.5 percent, three companies rose for every one that fell, while the MSCI Asia Pacific Index rose 0.7 percent. Porsche auto stocks led higher, rising 2.4 percent after Bank of America Merrill Lynch recommends buying the shares, saying the German manufacturer of sports cars, may not be merged with Volkswagen AG. Irish banks led declines on concern that a bailout will dilute existing investors' stakes. Bank of Ireland fell by 11 percent, while Irish Life and Permanent Plc sank 16 percent.

Emerging Markets

The development of the nation's stocks rose for a third straight day, with the MSCI Emerging Markets Index rose 0.7 percent. The Bombay Stock Exchange Sensitive Index rose 2 percent, its biggest gain since 04 November, Infosys Technologies Ltd., the country's second software exporter, increased 3 percent. The Hungarian forint currency led gains, the appreciation of 0.9 percent against the dollar and 0.4 percent against the euro.

The U.S. futures rise indicated that the S & P 500 may extend its 0.4 percent advance on November 19. The index is up 17 percent from its 2010 low on July 2 on optimism the Federal Reserve plan to buy assets that stimulate growth as the company's quarterly results beat analysts' forecasts. The index had fallen the most in almost three months on November 16 amid speculation that the debt crisis is worsening in Europe and China will curb lending to curb inflation.

The yield on Treasury two years has changed little over 0.52 percent. The U.S. dollar auctions 35 billion of debt today, followed by sales of titles from five years ago and seven-year notes in two days.

Oil, gold

Crude for January delivery gained as much as 89 cents to $ 82.87 a barrel in electronic trading on the New York Mercantile Exchange. Gold for immediate delivery by 0.6 percent, to $ 1,360.98 an ounce. Corn for March delivery rose 1 percent on the Chicago Board of Trade. The S & P GSCI commodity index rose 0.9 percent.

The New Zealand dollar fell against the 16 most actively traded peers, weakening 0.3 percent to 77.61 U.S. cents. S & P cuts outlook credit of the nation in its AA rating to negative, saying in a statement that "the main risk to the rating would be a significant weakening of credit quality in the banking sector in New Zealand."