(Bloomberg) -- Stocks advanced around the world after an agreement on a cease-fire in Ukraine. The yen strengthened as people familiar with Bank of Japan talks said further stimulus is viewed as counterproductive, while Greek markets climbed and crude oil rose.
The MSCI All-Country World Index added 0.4 percent at 6:23 a.m. in New York, with futures on the Standard & Poor’s 500 Index rising 0.5 percent. Credit-default swaps on Russia fell to the lowest since Jan. 2. Greece’s ASE Index of equities gained 4.7 percent and the yield on three-year notes fell 119 basis points to 19.56 percent. The yen appreciated 0.5 percent. Sweden’s krona tumbled and stocks jumped to a record high after the central bank cut interest rates and said it would buy bonds. Oil advanced for the first time in three days.
A truce in eastern Ukraine is to start Feb. 15, Russian President Vladimir Putin told reporters in Minsk, Belarus, after talks with French, German and Ukrainian leaders. At a separate meeting in Brussels, last-minute questions from the government in Athens snagged progress toward an agreement between Greece and creditors, with talks to resume on Feb. 16. The BOJ is concerned further monetary easing may trigger declines in the yen that damage confidence, people familiar with the talks said.
“Hopefully the cease-fire in Ukraine will
allow investors to move on,” Kully Samra, who manages U.K. clients for Charles Schwab Corp. in London, said by phone. “That’s helping push markets higher. People also seem to be looking beyond the fact that there is no deal on Greece yet.”

Stock Gains

The Stoxx Europe 600 Index of shares rose 0.7 percent and Germany’s DAX advanced 1.5 percent after the Ukraine cease-fire was announced.
Automakers and miners in the Stoxx 600 rallied the most among 19 industry groups. Renault SA gained 9.6 percent after reporting that 2014 earnings jumped 30 percent, beating analysts’ estimates. Peugeot SA, which posts results next week, advanced 2.8 percent.
Credit Suisse Group AG jumped 8.8 percent after returning to profit, Rio Tinto Group rose 3.5 percent as the world’s second-largest mining company reported better-than-forecast annual earnings and Publicis Groupe SA gained 5.2 percent after quarterly revenue beat estimates.
Russia’s Micex index added 2.7 percent and Russia CDS fell 31 basis points to 498 basis points, according to data compiled by Bloomberg, down from a six-year high of 629 basis points set on Jan. 30. The ruble slipped 0.5 percent.
Ukraine’s currency weakened and bonds declined amid concern the latest accord will fail to end violence in the country’s east even after the government received a $40 billion bailout. The hryvnia weakened 2.7 percent to 26.700 per dollar.

Currencies Diverge

As central banks around the globe seek to boost their economies by lowering interest rates even below zero, foreign-exchange investors are turning more bullish on regimes where monetary policy may stay the same or rates may rise.
Japan’s currency strengthened to 119.81 per dollar and was up 0.5 percent at 135.84 per euro on speculation the central bank will refrain from adding stimulus. The pound climbed against all of its major peers after the Bank of England said inflation will breach its target in three years, signaling it may have to raise interest rates faster than investors currently anticipate.
Sweden’s krona tumbled 1.3 percent to 9.6139 per euro, pushing the benchmark OMX Stockholm 30 Index 1.8 percent higher, as the Riksbank announced stimulus measures to jolt the largest Nordic economy out of a deflationary spiral.

Greek Talks

The Australian dollar weakened to 76.69 U.S. cents in a third day of declines. Data Thursday showed Australian employment dropped by 12,200 jobs in January from the previous month, more than double the decline projected by economists.
Greek 10-year bonds advanced, sending yields 23 basis points lower, to 10.37 percent, after a six-hour meeting of euro-area finance ministers. Italian securities rallied, pushing 10-year yields six basis points lower to 1.64 percent.
“We covered a lot of ground but didn’t actually reach a joint conclusion on how to take the next steps,” Jeroen Dijsselbloem, the Dutch finance minister who chairs the euro group’s talks, said at a press conference. “There has to be a political agreement on the way forward.”
Treasuries fell, reversing an earlier advance and pushing the 10-year note yield two basis points higher to 2.04 percent. The U.S. sells 30-year bonds today.

Crude Demand

West Texas Intermediate for March delivery climbed 2.9 percent to $50.23 a barrel. The contract fell $1.18 to $48.84 on Wednesday. U.S. stockpiles increased for a fifth week through Feb. 6 to 417.9 million barrels, the most in records dating back to August 1982, the Energy Information Administration reported on Wednesday.
Brent advanced 2.1 percent to $55.81 a barrel. It dropped $1.77 to $54.66 on Wednesday. Demand is increasing and there are indications that prices are stabilizing, according to Saudi Arabia’s Oil Minister Ali al-Naimi.
Kraft Foods Group Inc., American International Group Inc. and CBS Corp. are among 17 S&P 500 companies reporting earnings today. About 77 percent of those that have posted results this season have beaten analysts’ estimates for profit and 57 percent topped sales projections, data compiled by Bloomberg show.
U.S. reports may show initial jobless claims increased in the week ended Feb. 7 and retail sales slipped for a second month in January, according to analysts surveyed by Bloomberg News.