U.S. stocks fluctuate, bonds little changed amid earnings, data

Kiwi Climbs

The Japanese yen strengthened for the first time in three days against the euro, rising 0.4%, and increased 0.8% to 99.52 per dollar. The euro advanced 0.3% to $1.3246.

New Zealand’s dollar climbed at least 1% against all 16 of its major counterparts. Reserve Bank Governor Graeme Wheeler said a removal of monetary easing “will likely be needed in the future.” The kiwi gained 1.8% to 80.76 U.S. cents.

The pound increased 0.3% to $1.5366 as a report showed Britain’s economy grew 0.6% in the second quarter, with all main industries showing expansion for the first time in three years.

German bund yields rose three basis points to 1.67%. Data showed German business confidence rose for a third month in July. The Ifo institute’s business climate index, based on a survey of 7,000 executives, increased to 106.2 from 105.9 in June. Economists predicted an increase to 106.1, according to the median of 45 forecasts in a Bloomberg News survey.

The cost of insuring against losses on corporate bonds rose, with the Markit iTraxx Europe Index of credit-default swaps on 125 investment-grade companies increasing 3.2 basis points to 103.31 basis points.

The average yield investors demand to hold speculative- grade corporate bonds in euros fell to 4.75% yesterday, the lowest since June 4. The rate for investment-grade securities rose 5 basis points to 2.03%, the highest since July 5, Bloomberg index data show.

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