EU Leaders Pledge "Substantial Assistance" for Greece, Stocks Higher
Equity futures are pointing upwards after it was announced that European Union leaders came up with a rescue package for Greece.
According to the Financial Times, the package for Greece includes “substantial” assistance from the International Monetary Fund plus agreements from eurozone states to offer bilateral loans if Athens experiences “very serious difficulties.”
Herman Van Rompuy, president of the European Council, commented, “We hope that it will reassure all the holders of Greek bonds that the eurozone will never let Greece fail . . . If there were any danger, the other members of the eurozone would intervene.”
ECB President Jean-Claude Trichet said he is “happy” with the draft plan to aid Greece; Greek Prime Minister George Papandreou said the package would fortify the value of the euro; German Chancellor Angela Merkel said she is satisfied with the package, which was necessary to maintain a stable currency.
Two hours before the opening bell, Dow futures are up 25 points to 10,816.00 and S&P 500 futures are up 2.25 points to 1,165.00. Also, WTI crude oil is 56 cents higher at $81.09 per barrel and Spot Gold is up $6.20 to $1,096.70.
The US dollar index is weak this morning. Meantime, this morning’s Wall Street Journal reports that a sharp decline in the demand for Treasuries this week is sparking speculation of higher rates down the road.
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