Global stocks rise
The Associated Press (AP) said that as trading opened in Europe, Britain’s FTSE 100 index soared 227.03 points, or 4.4 per cent, to 5,350.05, Germany’s DAX climbed 4.3 per cent while the CAC-40 in France vaulted 7.3 per cent.
Earlier in Asia, Japan’s Nikkei 225 stock average rose 1.6 per cent to 10,530.71 and Hong Kong’s Hang Seng index jumped 2.5 per cent to 20,426.64. Other major benchmarks in Asia advanced as relieved investors began buying after big declines last week.
The euro traded at $1.3044, up from the 14-month low of $1.2523 it hit late last week after a 110 billion euros ($142 billion) loan package to Greece failed to calm markets. Stock futures suggested Wall Street would welcome the euro defence plan as Dow futures climbed 345 points, or 3.3 per cent, to 10,680.
“It could very well be that the storm has been weathered,” said Tim Condon, head of Asia research for ING in Singapore. Europe’s top finance officials were obviously “very shocked” by the market skepticism over the bailout of Greece, triggering Monday’s headline-grabbing measures, he said.
Under the three-year plan, the EU Commission will make 60 billion euros ($75 billion) available while countries from the 16-nation eurozone would promise bilateral backing for 440 billion euros ($570 billion). The IMF would contribute an additional sum of at least half of the EU’s total contribution, or 250 billion euros, Spanish Finance Minister Elena Salgado said.