World markets cheer Greek, Japanese news

Investors in Europe cheer a report suggesting that Greece could receive additional aid from the EU and IMF. Stocks in Japan rise on signs of strength in manufacturing.

The advance in Europe came after a report in the Wall Street Journal said Germany may abandon its push for an early rescheduling of Greek debt, which could set the stage for another round of emergency funding for Athens. "Risk assets are rallying overnight after a WSJ story said that Germany is considering dropping its push for a rescheduling of Greek bonds in order to facilitate a new aid package for Greece," analysts at Deutsche Bank wrote in a note to investors. Concerns about the Greek economy, which is beset by massive public debt, have been festering for over a year. While the EU and the International Monetary Fund have already approved billions of dollars in loans for Greece, the nation continues to struggle. Germany and some other European powers had argued that additional aid for Greece should be tied to more austerity measures. But supporters of more aid say the Greek economy is too weak to handle further cutbacks. Stocks in Frankfurt were up over 2%, while London's FTSE 100 rose nearly 1% and the CAC 40 in Paris gained 1.4%.

Euro Rises On Optimism Over Greece

The euro climbed against most of its major peers, while Asian stocks and U.S. equity-index futures advanced amid speculation European nations will pledge more funds to repair Greece’s finances. Wheat sank the most in three weeks after Russia said it will allow grain shipments to resume.

Europe’s 17-nation currency strengthened 0.6 percent to $1.4369 and rose 0.5 percent to 116.13 yen as of 9:35 a.m. in Tokyo. The MSCI Asia Pacific Index climbed 0.6 percent, paring its steepest monthly slump in a year. Standard & Poor’s 500 Index futures added 0.4 percent. Wheat tumbled as much as 4.4 percent. Oil erased earlier losses, while copper snapped a four- day advance in New York.

EUR/USD Technical Outlook: Greece Debt Crisis Major Risk Concern

Euro under pressure, falling from Wellington highs of 1.4335, hitting lows 1.4272, weighed by concerns over Greece - with reports Greece missed all the conditions. Der Spiegel: The troika asserts in its report to be presented next week (this week) that Greece had missed all its agreed fiscal targets." The mission team from IMF, EC and ECB has found that Greece has missed all targets under its bailout plan, putting further funding for Greece at risks. On FX, EUR/USD at 1.4300-20 for now, bids at 1.4280-60, eye break of 1.4250/ 1.4200 again.