EU Pledges 750 Bn Euros to Stabilize Currency

Markets in Europe and Asia turned sharply positive Monday on news that the EU finance ministers had reached a deal that would set aside 750bn euros (US$975bn; £650bn) to ensure other European countries can avoid the debt crisis now crippling Greece. The International Monetary Fund will also contribute to the package.

The euro quickly climbed above $1.30 after falling to a 14-month low last week. Japan’s Nikkei 225 index was up 1.3% and Hong Kong’s Hang Seng index rose 0.8%, while London’s FTSE 100 share index was trading up 255.5 points at 5,314 by mid-day.

More importantly however, may be the drop in the rate on Greek debt. In a strong showing of support for the deal, the rate on two-year Greek bonds fell immediately, from 18.1% to 4.9%.

Source: BBC News

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