“Stocks in Europe fell from a 22- month high and the yen rebounded from a 2 1/2-year low against the dollar. Banks rose as regulators watered down liquidity rules while Italian bonds retreated.
The Stoxx Europe 600 Index (SXXP) slipped 0.2 percent at 7:20 a.m. in New York after closing at its highest level since February 2011 last week. BNP Paribas SA and Barclays Plc led banks higher. Standard & Poor’s 500 Index futures fell less than 0.1 percent. The yen advanced against all major peers, adding 0.3 percent versus the dollar. Italian and Spanish bonds declined. Copper slid 0.6 percent and oil lost 0.5 percent.
Central bankers meeting yesterday in Basel, Switzerland, allowed lenders to use a wider range of assets to meet the so- called liquidity coverage ratio amid warnings the proposal would strangle lending and stifle the economic recovery. Alcoa Inc. (AA) will unofficially kick off the U.S. earnings reporting season after the market closes tomorrow. European Central Bank President Mario Draghi’s Governing Council will meet Jan. 10 to focus on nursing the euro region back to economic health.
“Markets that had enjoyed a nice rally recently are giving back part of their gains,” said Heo Pil Seok, chief executive officer at Midas International Asset Management Ltd., which oversees $5.5 billion. “Earnings season in some countries kicks off soon, which will be keenly watched by investors at least until early February.”
