| European bourses bergeliat Driven Plan "Bailout" Greece |
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| Tuesday, 27 April 2010 09:20 | |||||||
Page 1 of 2 LONDON
- Europe's main stock markets rose on Monday after trading prospects of
the bailout (bridging)-European Union developed the IMF for Greece, but
Portugal's stock market dropped amid fears the possibility of
transmission of Greek debt crisis.
In London, the FTSE 100 benchmark index closed up 0.53 percent to 5753.85 points, the CAC 40 in Paris rose 1.17 percent to 3997.39 points and Frankfurt's DAX index advanced 1.16 percent to end at 6332.10 points . Stock investors are generally optimistic after the Greeks who were in debt ask for 45 billion euro rescue (60-billion-dollar) EU and International Monetary Fund (IMF) last week to help avoid default (failure). The end of German skepticism of the plan also appears to calm the situation, with Chancellor Angela Merkel spoke of "faith" in the ongoing talks and said there is a need for "quick reaction to the stability of the euro zone." Altium Securities analyst Ian Williams argues that stock market participants are willing to take more risks in the middle of "signs of progress" over the debt crisis of the Greek. "The swing sentiment about the progress (or otherwise) of the Greek rescue still trying to become a major driver of global risk appetite," Williams said. However, in foreign exchange transactions, the European single currency slumped against the dollar because traders are not convinced by the rescue package Greece. In the bond market, the yield or rate of return on the Greek government bond benchmark 10-year rise above 9.0 percent for the first time since Greece joined the euro zone in 2001, showed the fear of default. "Greek debt crisis shows little sign of early resolution," said economist VTB Capital, Neil MacKinnon. "The financial markets responded to mute the news last week that Greece has requested assistance from the EU / IMF. "The risk is that Greece might ultimately can not avoid a debt restructuring. The cost of fiscal adjustment is too high and the infection spread to the other eurozone economies." Greece hopes to get financial rescue package before May 19 deadline to pay bondholders more than eight billion euros. There was further encouragement for the market after the U.S. government says it will start selling 1.5 billion stake in Citigroup and heavy equipment maker Caterpillar reported it swung to a profit. "The season's first quarter earnings continued to increase in much better shape than expected," said Fred Dickson, market strategist of DA Davidson & Co.. "The news flow of income seems to be closing out the disturbing news out of Greece and other minor issues such as the potential impact of the reform of financial regulation on Wall Street," he added. On Wall Street, the Dow Jones Industrial Average rose 0.21 percent and the Nasdaq composite index fell 0.12 percent in afternoon trading. Earlier in Tokyo rose 2.30 percent and Hong Kong rose 1.61 percent following a rise of U.S. housing data released on Friday. | Antaranews | tenderoffer.biz |
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