Eurozone assets all strengthened Tuesday after the Greek government dropped calls for a write-down on its bailout debt, mitigating market fears of a potential fallout, reports Ryan Vlastelica for Reuters. [The Next Act in the Greek Drama]
“The market is beginning to see signs of some stability coming into oil and the Greek situation seems to be tilting towards the side of what the market is looking for, which is a retreat from its call for a debt writedown,” Andre Bakhos, managing director at Janlyn Capital LLC, said in the Reuters article.
Bolstering the Eurozone country-specific ETFs, the euro currency also appreciated against the U.S. dollar, with the CurrencyShares Euro Currency Trust (NYSEArca: FXE) up 1.3% Tuesday. The country-specific ETFs do not hedge currency risks, so a stronger euro currency helps support U.S.-dollar-denominated returns.
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