By msnbc.com news services
U.S. and European stocks rebounded on Wednesday after encouraging U.S. jobs data, and the euro fell to three-week lows as investors await the outcome of the Greek debt restructuring deal.
Major banks and pension funds threw their weight behind Greece's bond swap offer to private creditors on Wednesday, raising the likelihood that the deal will go through and a 130 billion euro international bailout package would be secured.
Some traders are still hoping for Greece to clinch a debt restructure before Thursday's deadline. This outlook helped revived appetite for stocks, oil and gold and kept a lid on safe-haven demand for U.S. and German government debt.
"The Greek debt restructure is still hanging over the market, but I think investors are paying more attention to the U.S. where there are some good news coming out especially on the job front," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago, which oversees $55 billion.
Boosting investor sentiment was a report from payroll processor ADP that showed slightly stronger-than-expected U.S. job growth in February, suggesting the world's biggest economy is gaining traction.
But a surprising fall in German factory orders in January reinforced fears Europe is at risk of a recession.
Those concerns kept the euro on the defensive after the single currency fell to a three-week low against the dollar at $1.3098. On the other hand, the dollar index hovered near a three-week high, last traded at 79.88.
"Even if we have a successful Greek debt restructure we could still have a weaker euro," Ablin said.
Thirty major holders of Greek government bonds said on Wednesday they will take part in the country's debt swap, increasing chances of the deal going through. They represent 39.3 percent of the debt eligible for the exchange, or 81 billion euros.
If fewer than 75 percent of creditors accept the offer, the debt swap could be off, potentially plunging the euro zone back into crisis.
FTSE Eurofirst index of top European shares rose 0.3 percent after losing 2.6 percent in the previous session -- its biggest daily fall in nearly four months.
Gains on Wall Street and Europe offset losses in Asian markets. MSCI's all-country world equity index was little changed at 322.9, a day after recording its biggest one-day drop since late November.
In commodity markets, oil prices gained after China said it would boost energy imports this year while concerns persist over supply risks and Iran's nuclear program, despite the country's offer for talks with major powers.
Front-month Brent gained 43 cents to $122.41 a barrel and U.S. oil was flat at $104.66 a barrel.
Gold was steady at $1.673.41 an ounce, as jewelers in Asia snapped up the metal after prices dropped 2 percent in the previous session.
Benchmark 10-year Treasury notes were down 2/32 at 100-12/32 in price for a yield of 1.96 percent. German Bund futures came off their contract high, last traded up 22 basis points at 140.50.
Reuters contributed to this report.
