Global markets and exchange traded funds (ETFs) gained as the world breathed a collective sigh of relief on news of additional financial aid for the beleaguered Greek economy.
SPDR DJ STOXX 50 ETF (NYSEArca: FEU) is up 2.98%, Vanguard European ETF (NYSEArca: VGK) is up 1.42% and iShares S&P Europe 350 Index Fund (NYSEArca: IEV) is up 1.42%.
Rydex CurrencyShares Euro Trust (NYSEArca: FXE) is up 0.65% and WisdomTree Dreyfus Euro Fund (NYSEArca: EU) is up 1.17%.
Luxembourg’s Jean-Claude Juncker, the leading euro-area finance minister, announced that European Union leaders are cogitating on a new aid package for Greece, report Stephen Kirkland and Nikolaj Gammelto Bloomberg. [Greece Bailout Catapults Stock ETFs Higher.]
The news sparked a small respite in European stocks and quickly spread out to global markets. The euro currency also strengthened against a basket of currencies on the optimistic outlook.
“We have had a pattern where the impact on the dollar is positive,” remarks Tom Mangan of James Investment Research Inc, “U.S. bonds do better and stocks fade every time the Greek crisis rears its ugly head, and the other way around. This will continue until we get it resolved.”
The Stoxx Europe 600 Index ended up 0.8%. The Greece ASE Index jumped 5.6%.
For more information on Greece, visit our Greece category.
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
Max Chen contributed to this article.