Stocks, Euro Rise as Greece Approves Austerity Plan

Stocks advanced, rebounding from the biggest loss this year, and the euro strengthened while German bonds fell after Greek lawmakers approved austerity plans to secure rescue funds. Oil led commodities higher.

The MSCI All-Country World Index (MXWD) added 0.6 percent at 8:15 a.m. in New York.

Futures on the Standard & Poor’s 500 Index climbed 0.7 percent.

The euro strengthened 0.5 percent to $1.3263, while the yen weakened against all 16 most-traded currencies.

The yield on the benchmark 10-year bund jumped six basis points, with the 10-year Italian yield falling 13 basis points. The S&P GSCI gauge of commodities rose 0.9 percent.

U.S. Stock Futures Rise on Greek Austerity

U.S. stock futures rose, after the first weekly loss for the Standard & Poor’s 500 Index in 2012, as Greece approved austerity plans to secure rescue funds.

Bank of America Corp. and Citigroup Inc. (C) climbed more than 2.1 percent as a measure of European lenders gained.

Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. (FCX) added at least 1.3 percent as the S&P GSCI Index of commodities increased 0.9 percent.

Nvidia Corp. (NVDA) advanced 2.5 percent after the maker of graphics processors was raised at FBR Capital Markets.

Stocks, Euro Rise on Greek Debt Talks

Stocks (MXWD) climbed around the world, heading for the best January since 1994, the euro strengthened and commodities gained after most countries in Europe agreed to tighter budget controls and Greece made progress on debt talks.

The MSCI All-Country World Index (MXWD) rose 0.6 percent at 9:30 a.m. in New York, taking its monthly gain to 6.2 percent.

The Standard & Poor’s 500 Index added 0.4 percent and is up 4.8 percent in the month.

The euro appreciated 0.2 percent to $1.3169, set for its first monthly advance since October.

Greek Debt Wrangle May Pull Default Trigger

Opposition to payouts on Greek credit-default swaps from European Union policy makers is softening as disputes over a voluntary debt exchange threaten to push the nation into default.

Any agreement between the Greek government and the Washington-based Institute of International Finance on debt write downs will only bind 50 percent of investors in the 206 billion euros ($270 billion) of notes being negotiated, Barclay’s Capital estimates.

Hedge funds may resist a deal, seeking to get paid in full or compensated from insurance contracts.