Tuesday, May 31, 2011
Stocks, Euro Gain on Greek Aid Optimism; Treasuries Erase Loss
May 31, 2011
Stocks rose worldwide, paring the biggest monthly decline since August, and the euro gained amid speculation nations will pledge more aid to Greece. Commodities advanced, while Treasuries erased losses after U.S. economic reports missed forecasts.
The MSCI All-Country World Index increased 1 percent at 10:41 a.m. in New York, paring this month’s loss to 2.8 percent. The euro climbed to a three-week high of $1.4424, and the yen fell against its 16 major peers. Among 10-year bonds, German bunds added five basis points to 3.02 percent, Greek yields slid 23 basis points to 15.93 percent and Treasuries dropped to 3.06 percent from 3.10 percent. Oil rose, and wheat dropped.
European Union leaders will decide on a new aid package for Greece by the end of next month, Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said yesterday in Paris. More than $1.8 trillion was erased from the value of stocks worldwide this month through yesterday as evidence mounted that the U.S. economic recovery is slowing and EU officials struggled to contain the region’s debt crisis.
Posted by Yulie Foka-Kavalieraki at 5:54 PM