Currencies

• EUR/USD The euro erased its gains versus the U.S. dollar on Monday after a ratings company warned that the proposed rollover of Greek government debt would likely be considered a default..


• USD/CAD The currency, also known as the loonie, has strengthened more than 3 percent since touching a three-month low on June 27. A July 8 government report will show Canadian employers added jobs for a third straight month in July, economists predict. It was trading at 80.750 around 7:30 a.m. London time.


• GBP/USD fell with the rest of the market after it rallied up to 1.6100 whilst other majors did very little. Overall the Cable traded with a low of 1.6052 and a high of 1.6142 before closing the day at 1.6090 in the New York Session.

Commodities

• Gold gained for the first time in three days in London as some investors bought the metal after its drop to a six-week low and as a weaker dollar spurred demand for an alternative asset..

• WTI traded near $95 a barrel for a second day in New York, failing to extend last week's 4.2 percent gain, as investors bet China will step up efforts to cool its economy, tempering fuel demand.

• Brent crude was lower this afternoon, weighed down by concerns over the health of the global economy, the Greek debt crisis and a stronger dollar. ICE Brent crude fell 25 cents to $US111.14 a barrel.

Equities

• U.S. stocks posted the biggest weekly rally in two years after Greece took action to avoid a default, Nike Inc. (NKE)'s earnings topped analyst estimates and U.S. manufacturing growth rebounded.
  • Caterpillar Inc. (CAT), United Technologies Corp. (UTX) and 3M Co. (MMM) jumped at least 6.3 percent.
  • Nike, the world's largest sporting-goods company, climbed 13 percent. Visa Inc. (V) surged 20 percent,
  • The S&P 500 surged 5.6 percent to 1,339.67.
  • The Dow Jones Industrial Average advanced 5.4 percent to 12,582.77.


• European stocks struggled to extend last week's gains on Monday after Standard & Poor's warned that a recent French proposal to get banks involved in helping Greece would trigger a default on the country's debt.
  • The FTSE 100 index of leading British shares closed up 0.5 percent at 6,017.54 while Germany's DAX rose 0.3 percent to 7,442.96. The CAC-40 in France ended 0.1 percent lower at 4,003.76.

• Asian stocks swung between gains and losses as banks declined in China after Moody's Investors Service said the potential scale of problem loans at lenders is greater than had been anticipated, offsetting gains by Tokyo Electric Power Co.

Sources: Bloomberg, FT