Markets Gain on Speculation Greece to Receive Cash

Markets rallied today as speculation grows that Greece will receive an economic bail-out to help the beleaguered nation deal with its rising deficit. The Standard & Poor’s 500 Index rose 1.6 percent at 1:53 p.m. in New York, while Greece’s ASE Index climbed 5 percent, rebounding from four days of losses.

In addition, the euro strengthened the most in more than five months against the dollar, snapping four days of declines, and ended a three-day drop against the yen. Oil, copper and aluminum surged at least 2.2 percent to help lead gains in commodities.

“The markets are smelling a deal for Greece, and for that reason we’re seeing some stabilization,” said Robin Marshall, director of fixed income in London at Smith & Williamson Investment Management, which oversees about $20 billion. “It’s hard to see there not being one, given the potential fallout and contagion effect.”

Source: Bloomberg

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