Euro dips following Greek debt swap

European stocks rose slightly in early trade today, climbing for a third day in a row, after 85.8 per cent of Greece's private creditors accepted its bond swap offer, avoiding a disorderly default.

The euro edged lower on profit-taking today, however, dipping about 30 pips or so after Greece's announcement to an intra-day low near $1.3224 and last stood at $1.3241, down 0.3 per cent from late US trade yesterday.

Shares in banks, the biggest holders of Greek debt, gained ground, with Commerzbank up 1.4 per cent and Credit Agricole up 2.2 per cent.

Greece's benchmark stock index ATG was up 1.6 per cent, extending a two-week rally to nearly 10 per cent.

Around Europe, Britain's FTSE 100 index was flat and France's CAC 40 was up 0.1 per cent, while Germany's DAX index was up 0.4 per cent, outperforming following upbeat macro data.

Investors were also betting that US jobs data for February, due this afternoon, will show a third consecutive month of solid job gains, although traders warned a strong figure could further dampen expectations of additional monetary stimulus from the US Federal Reserve.

Greece's finance ministry said creditors had tendered 85.8 per cent of the €177 billion in bonds regulated under Greek law. That rate would reach 95.7 per cent of all Greek debt with the use of "collective action clauses" to enforce the deal on creditors who refused to take part voluntarily.

The anticipated deal should give the green light to the €130 billion rescue package from the European Union and International Monetary Fund.

German exports bounced back in January, lifted by brisk demand from outside the crisis-stricken euro zone, widening the trade surplus and fuelling expectations that Europe's largest economy will have avoided a recession.

"The positive thing is that exports have recovered from the setbacks at the end of the year. Germany is profiting from its strong diversification," Berenberg Bank economist Christian Schulz said. "When the euro zone is flagging then demand from emerging economies helps."

Reuters