* Investors focus on U.S. fiscal risks, Greek uncertainty
* U.S. and European shares recover on Boehner comments
* Euro little changed, trepidation on Greek deal remains
* Commodity traders focus on negative
NEW YORK, Nov 28 U.S. and European stocks
recovered from early losses to post gains while the euro pared a
decline to trade little changed on Wednesday as investors
shifted into buying mode after perceived positive news on U.S.
U.S. House Speaker John Boehner, an Ohio Republican, said he
is willing to put revenues on the table if accompanied by
spending cuts. But he repeated his opposition to raising income
Boehner's comments came as U.S. indexes were marking session
lows and produced a sharp turnaround that reverberated through
Investors remained skeptical over the plan agreed to late
Monday by international lenders to reduce Greece's debts, but
they were more focused on the positive news. The Greek deal
opened the way for more aid to Athens to avoid a chaotic
default, but details remain unclear and analysts worry it will
not do enough to make Greece's debt viable.
Riskier sovereign debt of Italy and Spain bounced sharply in
price, in part due to hedge funds taking profits on previous
short positions following the Greece deal.
U.S. stock markets have been a prisoner of the shifting
winds in Washington in recent weeks. The equity market has been
under pressure following the re-election of President Barack
Obama due to concerns about the impact on the economy of the
planned package of tax increases and spending cuts known as the
"fiscal cliff" due to take effect in January.
"There's only one issue in front of the financial markets,
and it's the debate on the 'fiscal cliff,'" said Jack De Gan,
chief investment officer of Harbor Advisory Corp in Portsmouth,
New Hampshire. "That's the only issue out there, and I think in
the short term, there's not much that we can do other than
watch, and try to anticipate what's going to happen."
On Tuesday, stocks declined after U.S. Senate Majority
Leader Harry Reid, a Nevada Democrat, expressed disappointment
over the progress of the talks between Democrats and
But Obama said on Wednesday he hopes he and Congress can
reach an agreement to shrink the budget deficit before Christmas
and urged supporters to press lawmakers to agree to a deal.
"Anything that points to a deal happening is going to be
good for the market right now. Anything that points to a deal
falling apart is going to be bad for a market. We are becoming
myopically focused on this one issue, and I think that continues
for a while longer," said Stephen Massocca, managing director at
Wedbush Morgan in San Francisco.
The Dow Jones industrial average gained 106.98
points, or 0.83 percent, at 12,985.11. The Standard & Poor's 500
Index was up 10.99 points, or 0.79 percent, at 1,409.93.
The Nasdaq Composite Index added 23.99 points, or 0.81
percent, at 2,991.78.
The MSCI index of global stocks was up 0.3
percent. The FTSEurofirst300 index of European stocks
rose 0.2 percent.
In currency markets, the euro was little changed at
$1.2940 as some traders bet recent gains made in the run up to
the Greek deal were too far, too fast. But the
single currency was well off the session low of $1.2878.
"The uncertainty brought by this (Greek deal) approach makes
European assets, including the euro, vulnerable to global growth
risks," Barclays Capital analysts said in a note. "For that
reason we think the European muddle through amplifies the
market's response to the fiscal cliff discussion in the U.S."
Ten-year Italian government bond yields fell to their lowest
since February 2011, however, and Spain's
benchmark 10-year note went to its lowest yield in a month
The benchmark 10-year U.S. Treasury note was up
3/32, with the yield at 1.6284 percent.
In Asia, MSCI's broadest index of Asia-Pacific shares
outside Japan fell 0.3 percent.
Commodity markets remained focused on the negative news and
how a possible U.S. budget crisis could tip the world's biggest
economy into recession.
Gold fell for a third straight day, copper
dropped from a three-week high and Brent crude fell to
around $109 per barrel.
U.S. crude oil futures fell 0.9 percent to $86.43.
"There is bearish sentiment caused by problems in U.S.
negotiations, with the 'fiscal cliff' still looming," said Filip
Petersson, analyst at SEB in Stockholm.