Pre-Market: No Greek Default?

|
 |  Includes: DIA, QQQ, SPY
by: Market Blog

Global stocks leapt as European leaders signalled that Greece would not default on its debt and would remain in the euro zone.

Britain's FTSE 100 rose 1.8 per cent, France's CAC 40 surged 2.7 per cent and Germany's DAX jumped 2.8 per cent. Japan's Nikkei 225 rose 1.8 per cent, while Hong Kong's Hang Seng ended 0.7 per cent higher.

U.S. stock futures indicated a higher opening on Wall Street as well. Dow futures gained 71 points, or 0.6 per cent, to 11,245, while S&P 500 futures rose 7.5 points, or 0.6 per cent, to 1,189.70.

The leaders of France, Germany and Greece reaffirmed that Greece remained an “integral part” of the eurozone. German Chancellor Angela Merkel and French President Nicolas Sarkozy stressed to Greek Prime Minister George Papandreou that his debt-crippled country needs to honour its commitments on making savings and enacting reforms. Mr. Papandreou renewed his pledge ahead of Thursday's Greek cabinet meeting, where the reform program will top the agenda.

A review of Greek financial progress from the European Commission, the European Central Bank and the International Monetary Fund is due to resume in coming days. The European Union’s top economic official, Olli Rehn, said he expected international lenders to be able to recommend by the end of the month releasing a vital next tranche of aid for Greece, warding off the threat of an imminent default.

The euro pushed back up above the $1.38 (U.S.) mark for the first time this week.

UBS shares slid 7 per cent on the news that the Swiss bank had a rogue trader who lost about $2-billion, and police in London arrested an unidentified 31-year-old man in connection with the case.

U.S. crude oil rose 58 cents to $89.49 a barrel.

Gold lost $25.40, slipping to $1,801.10 an ounce.

The Canadian dollar traded higher at $1.0116.

Disclosure: None