LONDON-European markets were in a jittery mood yesterday due to uncertainty over whether Greece will get vital bailout cash to avoid defaulting next month, but more buoyant US jobs data helped shore up sentiment.
The Dow Jones industrial average rose 123.13 points to close at 12,904.08, its third triple-digit gain this year. It was the highest close for the Dow since May 19, 2008, four months before the worst of the financial crisis. The Standard & Poor's 500 rose 14.81 points to 1,358.04, its highest close in nine and a half months. The Nasdaq composite, which has had an even stronger year than the Dow and S&P and is trading at its highest since 2000, rose 44.02 points to 2,959.85.
Greece's economic future was the focus in the markets as a long-awaited bailout remained elusive. Stocks mostly fell, particularly in Europe, while the euro traded below US$1.30 and borrowing rates rose for Italy and Spain, an indication of renewed investor concerns that they will eventually be dragged back into the crisis that had shown signs of easing over the past few weeks. The prevailing view for much of this year has been that Greece would get its second bailout in less than two years and that has supported markets following the febrile atmosphere of 2011. For months, Greece has been discussing the details of a planned bailout worth €130 billion (US$170 billion) and an accompanying €100 billion (US$131 billion) debt writedown by private bondholders.
The US jobs data helped European markets and the euro clamber off earlier lows and pushed US stocks up at the open.
In Europe, the FTSE 100 index of leading British shares closed 0.1 per cent lower at 5,885.38 while Germany's DAX fell 0.1 per cent to 6,751.96. The CAC-40 in France ended 0.1 per cent higher at 3,393.25. Jean-Claude Juncker, who heads eurozone finance meetings, promised more clarity on Monday, when he said decisions will be made on Greece. His comments came as relations between Greece and its partners in the eurozone hit a new low with strong comments on both sides. Earlier in Asia, Tokyo's benchmark Nikkei 225 index shed 0.2 per cent to 9,238.10 and Hong Kong's Hang Seng was off 0.4 per cent at 21,277.2. Seoul's Kospi fell 1.4 per cent to 1,997.45. China's Shanghai Composite Index lost 0.4 per cent to 2,356.86. In the oil markets, prices fell alongside equities despite ongoing concerns about developments in the Persian Gulf and conflicting reports about whether Iran is cutting crude exports to Europe - the benchmark New York rate was down 12 cents at a barrel at US$101.68. (AP)
