U.S. stocks climb to four-year high as euro, commodities advance

‘Too Aggressively’

Fed Bank of Atlanta President Dennis Lockhart said U.S. policy makers face a risk of easing too much while trying to spur a “disappointing” three-year-old economic recovery.

“There is a risk to monetary policy being employed too aggressively and without effect to address economic problems that can be resolved only by fiscal reforms that involve making tough choices about the allocation of public resources,” Lockhart said today in a speech in Atlanta. While “monetary policy can exert a powerful positive influence on an economy,” it “is not a panacea.”

The Stoxx Europe 600 Index climbed 0.5 percent as more than three shares advanced for every one that declined. Julius Baer Group Ltd. added 3.1 percent as the wealth manager founded in 1890 reduced its rights offer to 500 million Swiss francs ($516 million) from 750 million francs. Straumann Holding AG tumbled 13 percent, the most since 2008, after the world’s biggest maker of dental implants reported first-half profit that fell.

Euro Strengthens

The euro appreciated against 14 of its 16 major peers, advancing 1 percent versus the yen. Japan’s currency weakened against 14 of its 16 main counterparts.

Concessions are possible for Greece so long as Samaras shows a willingness to meet the main targets set out in his country’s bailout program, a senior lawmaker with Chancellor Angela Merkel’s party said.

A precedent for program adjustments was made with the first Greek bailout, when the country secured lower interest rates and longer maturities on bilateral loans than those originally set, Norbert Barthle, the Christian Democratic Union’s budget spokesman in parliament, said today in a telephone interview.

“I’m expecting to hear European leaders expressing their willingness in coming to a consensus in terms of what steps are necessary to make this thing work,” said Mark Luschini, chief investment strategist for Philadelphia-based Janney Montgomery Scott LLC, which manages about $54 billion. “Any kind of concession toward allowing Greece more time, more lenient terms in the interest rates or financing, would be welcome.”

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