European Stocks, Euro Advance Before ECB Decision; Corn Rallies


02/08/2012 11:24 AST  Bloomberg

The euro advanced and Europe’s benchmark equity index climbed before a policy announcement from the region’s central bank after the Federal Reserve pledged more support for the U.S. economy if necessary. Asian stocks dropped.

The Stoxx Europe 600 Index rose 0.2 percent as of 8:13 a.m. in London. Futures on the Standard & Poor’s 500 Index futures added 0.1 percent. The MSCI Asia Pacific Index (MXAP) fell 0.3 percent, dropping for a second day. The euro traded for $1.2246, up 0.2 percent, while South Korea’s won weakened from a four-month high. Copper gained 0.4 percent and corn advanced for the first time in three days.

European Central Bank President Mario Draghi’s pledge last week to do “whatever it takes” to preserve the euro raised expectations for today’s policy decision. The Fed signaled its readiness to support the economy even as it refrained from adding to bond purchases yesterday. Asia’s benchmark MSCI Asia Pacific gauge fell for a second day after recording its biggest four-day gain this year through July 31.

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