Euro Rallies on Greek Aid Speculation

The euro rallied and emerging-market stocks recovered from the worst three-day slide in a year on speculation Greece will get European help to tackle its budget deficit. U.S. stock-index futures advanced.

The euro strengthened 0.6 percent against the dollar at 10:23 a.m. in London, snapping four days of declines, and ended a three-day drop against the yen. The MSCI Emerging Markets Index added 0.9 percent after falling 6.1 percent in the past three sessions. Futures on the Standard & Poor’s 500 Index increased 0.8 percent. Greece’s ASE Index rose 3.4 percent, rebounding from four days of losses.

European Union leaders will discuss Greece’s plans to reduce the region’s biggest deficit when they meet Feb. 11, and European Central Bank President Jean-Claude Trichet’s decision to leave a meeting of policy makers in Sydney one day early fanned speculation that officials will agree on aid. European Commission President Jose Barroso said investors would be wrong to bet against the euro.

Bloomberg

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