Thursday, June 30, 2011

Vote Calms Markets—for Now

Wall Street Journal
June 30, 2011

Financial markets breathed a sigh of relief Wednesday after the Greek Parliament approved a five-year austerity plan demanded by international creditors, but investors remain wary that the fix fails to resolve problems facing Greece—and Europe—in the long run.

The measures, which were demanded by international creditors as a condition of a new bailout, eased fears of an imminent default, but market reaction was muted by gains over the past two days, partly on expectations the budget-cutting package would pass.

The Dow industrials ended the day 72.73 higher at 12261.42, capping their biggest three-day winning streak since late March. The Stoxx Europe index jumped 1.7% at 269.8, and London's FTSE 100 index gained 1.5% to 5855.9. Asian markets opened mixed on Thursday, with Japan's Nikkei average unchanged.


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