Markets Rise as Greece, Dubai Detail Credit Plans

For the past few months, all eyes have been on Greece and Dubai as the two countries struggle to deal with a growing debt crisis. Fears of insolvency have abated somewhat with recent, but vague, promises of support from other EU nations in the case of Greece, and the delivery of a massive bailout to Dubai from fellow United Arab Emirates nation, Abu Dhabi.

This new-found confidence has helped push emerging-market stocks to a six-week high. Commodities have also rebounded with a corresponding increase in the currencies of those nations exporting oil and metals.

“You have this positive political momentum to support Greece,” said Michael Ganske, head of emerging-market research at Commerzbank AG in London. “Investors are also watching what’s going on in Dubai, but it’s not a dramatic situation.”

Source: Bloomberg

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