Market Buzz: Greek Bailout buoyancy
Finance ministers of the single currency area and representatives of the International Monetary Fund reached an agreement late Monday that will enable Athens to receive 34.4 billion ($40.8 billion) immediately and three additional payments in early 2013.
Asian stocks were the first to reflect the positive news on Tuesday.
Japan's Nikkei 225 index rose 0.4% to 9,424.91. South Korea's Kospi rose 1% to 1,927.59. Hong Kong's Hang Seng added 0.3% to 21,935.92. Australia's S&P/ASX 200 gained 0.7% to 4,454.40.
In Russia, stocks dipped on Monday, with the RTS losing 0.37% to 1, 426.92 and the MICEX slipping 0.65% to 1,403.94.Oil prices were the main “trade ideologist,” as Andrey Sakharov of Investcafe identified that. Brent crude lost 0.2% to stand at $111,22/bbl on Monday
In the US, the first full day of trading after the Thanksgiving holiday was mixed. The Dow Jones industrial average lost 0.3 % to close at 12,967.37. The S&P500 went down 0.2 % to 1,406.29. The Nasdaq composite rose 0.3% to 2,976.78.
The unresolved issue ofthe “fiscal cliff” – the automatic tax increases and steep spending cuts that take effect in January unless President Barack Obama and Congress reach a budget agreement – remains a heavy burden for stocks.
European stocks closed in the red on Monday anticipating a resolution over bailout funds for Greece. London's FTSE fell 0.6%, the CAC 40 in Paris slid 0.8%, and the German DAX slipped 0.2%.