European Stocks Get Greek Accord Boost

European stocks are rallying on reports that Greece has started crafting a “staff level accord” with its international bailout supervisors.

The Athens Composite traded 3.5 percent higher, while the pan-European FTSEurofirst 300 was up 1.1 percent. The euro also spiked on the news.

Bloomberg and Reuters reported that Greece and its bailout supervisors have started working on an “accord,” citing an unidentified official. This comes after months of battling between Greece far-left government and officials over an aid-for reforms deal.

According to Reuters, the unnamed official said that differences between the European Union and the International Monetary Fund were holding up a deal.

“The deadline we know is fast approaching and the assumption will be another can kick deal,” said Peter Boockvar, chief market analyst at The Lindsey Group, in an email sent on Wednesday.

“If there is none and Greece defaults, I honestly don’t know what the full repercussions will be at this point, as Greece is a political problem, not an economic one for the euro region.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza