Exchange traded funds tracking risk assets rallied and the euro jumped versus the dollar Thursday on headlines European Union officials have reached a deal on a second financial bailout for Greece.
SPDR S&P 500 ETF (NYSEArca: SPY) climbed more than 1% along with U.S. Oil Fund (NYSEArca: USO) as crude futures briefly traded above $100 a barrel.
CurrencyShares Euro Trust (NYSEArca: FXE) also gained over 1% after Reuters reported EU leaders were set to a promise a “Marshall Plan” of public investment to help Greece get back on its feet. [Euro ETFs in Focus Before EU Meeting]
The greenback lost ground against most rivals – PowerShares DB US Dollar Bullish (NYSEArca: UUP) fell nearly 1%. Gold ETFs were flat in recent trading.
The CBOE Volatility Index, Wall Street’s fear gauge, declined as markets embraced a “risk on” posture. [Risk On, Risk Off — Sector ETF Correlations Spike]
The iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) was down over 4%.
In U.S. stocks, banks led the way after Morgan Stanley’s (NYSE: MS) earnings beat. Morgan Stanley shares soared 8% while Financial Select Sector SPDR Fund (NYSEArca: XLF) added 1.8%.
U.S. Oil Fund
CurrencyShares Euro Trust
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