It finally looks like it just may happen: the International Monetary Fund (IMF) and the European Union are putting the finishing touches on an aid deal for Greece, and exchange traded funds (ETFs) have turned solidly positive on the news.
The IMF has promised to boost the aid package it’s giving to Greece by as much as $159 billion. An agreement is expected to be in place by Monday, and the value of such a deal will extend far beyond the aid package. Investors will finally be reassured that Greece is not going to fail, and the country will have help to emerge from the worst crisis since Asia’s troubles in 1997. CurrencyShares Euro Trust (NYSEArca: FXE) has firmed on the news and is up 0.3% so far today. [How to Play Currency ETFs While Greece Waits.]
Senate Republicans have finally relented and will let Democrats debate on financial reform, though that doesn’t mean they like the bill that’s being debated. It’s still seen as an important step to get the ball rolling on the most sweeping changes Wall Street could see since the Great Depression. SPDR KBW Bank (NYSEArca: KBE) is up about 1.6%. [Why Regional Bank ETFs Are Riding High.]
Exxon Mobil (NYSE: XOM) notched a gain in the first quarter, but it was a smaller one than analysts expected. The largest company in the world blamed increased costs as a result of health care legislation and the fact that U.S. refineries are operating at a loss. iShares Dow Jones U.S. Energy Sector (NYSEArca: IYE) is up 0.6% after the report; Exxon is 22.9%. [Alternative Ways to Get Oil Exposure.]
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
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