Trichett signals He May Back Greece; As a Result the Euro Pops Along With Some Markets and U.S. Futures

“The euro strengthened to a one-month high against the dollar after European Central Bank President Jean-Claude Trichet signaled he may back Greek debt rollovers. U.S. stock-index futures rallied, while oil declined.

The euro appreciated 0.6 percent versus the dollar at 7:25 a.m. in New York after gaining as much as 0.7 percent to $1.4683, the highest level since May 5. Australia’s dollar fell against 14 of its 16 major peers. The Stoxx Europe 600 Index added 0.1 percent. Standard & Poor’s 500 Index futures climbed 0.6 percent, indicating the gauge may rebound from a 2 1/2-month low, while the 10-year U.S. Treasury yield rose two basis points to 3.02 percent. Oil dropped 0.6 percent in New York.

The ECB isn’t opposed to private-sector creditors being asked to “maintain their level of outstanding credit,” Trichet said in Montrealyesterday, the first sign he endorsed measures to encourage investors to buy new Greek debt to replace maturing securities. Data indicating the U.S. economic recovery is losing steam helped erase more than $2.5 trillion from the market value of global equities since this year’s peak last month.”

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