Asia Stocks Up After Deal Over Greek Debt Reached
LONDON (AP) A deal to give Greece more cash was greeted with measured relief Tuesday, though concerns remained over the country's ability to implement its required reforms as the economy shrinks.
In the early hours of Tuesday, Greece's euro partners and the International Monetary Fund agreed to release vital loan payments totaling some 44 billion ($57 billion) and introduce a series of measures designed to reduce the country's massive debts to a more manageable level within a decade. These include reducing the interest rates Greece has to pay on the loans and a still-vague bond buyback program.
Though the deal avoids an imminent bankruptcy of Greece, the country still has to implement wide-ranging cuts and reforms in the months and years ahead. Many in the markets think that will be too much for a country that's about to enter its sixth year of recession and a society struggling to cope with rising poverty levels and an unemployment rate of 25 percent."Clearly Greece undoubtedly has the capacity to throw further bad news over the coming months and years although for now such risks should be laid low meaning that the eurozone crisis should remain off the boil into year end," said Jane Foley, an analyst at Rabobank International. In Europe, the FTSE 100 index of leading British shares rose 0.2 percent to close at 5,799.71 while Germany's DAX rose 0.6 percent to 7,332.33. The CAC-40 in France ended flat at 3,502.13. The rally in Athens was minimal, with the main index up only 0.3 percent as investors had hoped for a little more debt relief from the deal. The euro also gave up some earlier gains to trade 0.2 percent lower at $1.2945. In the U.S., stocks were underperforming as investors fretted again over the prospects of a budget deal between the White House and lawmakers to avoid the so-called "fiscal cliff" of automatic tax increases and spending cuts at the start of next year. Those concerns more than offset a rise in a closely-watched measure of consumer confidence the Conference Board's main index rose to 73.7, its highest level since Feb. 2008.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV