U.S., Europe Indexes Jump 2% on Greek Hopes

Bikram Pandey
26 Sep, 2011
New York City

U.S. markets shot up following markets in Europe on the hopes that European policymakers will are close to containing the Greek debt crisis. The speculation on both sides of Atlantic drove more than 2% on the imminent steps to pump more liquidity in the banks and contain Greek crisis.

[R]7:10 PM New York – U.S. markets shot up following markets in Europe on the hopes that European policymakers will are close to containing the Greek debt crisis. The speculation on both sides of Atlantic drove more than 2% on the imminent steps to pump more liquidity in the banks and contain Greek crisis. Gold extended losses.[/R]

U.S. indexes rebounded after a week of decline that wiped out nearly 7% of market values in stocks. Markets advanced in New York and in Europe on the optimism that European leaders are close to containing the widening Greek crisis.

European markets closed higher on the hopes that Germany and France are working on a plan to ask the largest 40 banks in Europe to recapitalize and expedite the funding of the rescue fund that will purchase the debts of peripheral nations.

European markets jumped more than 2% and markets in Milan, Athens and Zurich.

Markets in Tokyo dropped 2.2% and the index in the export driven economies like South Korea plunged 1.8% and in Taiwan declined 2.4%. Markets in Thailand plunged 5.7% and in Indonesia dropped 3.2% and in Singapore fell 1.7%.

Market indexes in Hong Kong extended losses for the second day by 1.5% to 6.2% losses and in India fell 0.7%.

Stocks in Japan extended losses after a 3-day weekend. The yen edged higher and trading companies led the decliners. Commodities traded lower. Nippon Electric Glass fell after it lowered its fiscal first half outlook.

Australian stocks extended losses for the third day in a row and markets in Asia declined. The ongoing turmoil in the euro zone is dampening the prospects of higher exports in Europe. Commodities prices declined sharply for the third day with gold trading 15% lower in seven days of trading.

Commodities, Bonds and Currencies

The 10-year U.S. bond yield closed up to 1.90% and 30-year U.S. bond increased to 2.99%.

The U.S. dollar decreased to $1.353 to one euro and closed higher against the Japanese yen to 76.38 yen.

Immediate delivery futures of Texas crude oil increased $0.39 to $80.24 a barrel and futures of natural gas increased 0.09 cents to $3.78 per mbtu and gasoline price rose 1.45 cents to 256.95 cents a gallon.

In metals trading, copper decreased 0.30 cents to $3.28 per pound, gold plunged $45 or 2.7% to $1,599.80 per ounce and silver dropped $0.12 to $29.97.