GOLD SILVER PRICE NEWS ~ NEW YORK, June 29 - World stocks rose for the third straight day and oil prices jumped on Wednesday after Greece's parliament approved the first of two austerity measures aimed at preventing the country from going bankrupt.
Safe-haven assets lost some of their appeal as Greek Prime Minister George Papandreou won a key battle to ensure the disbursement of a 12 billion euro tranche from a bailout program the country needs to avoid default next month.
"Risk seems to be back in the market after weeks of risk-off. That's helping the equities move higher," said Eric Marshall, director of research at Hodges Capital Management in Dallas.
Greece's government must now win approval on Thursday for legislation detailing specific implementation measures for its 28 billion euro austerity package. Wednesday's vote clears a major hurdle in its bid to win access to international funding to avoid a default in mid-July. For more, see: [ID:nL6E7HT0PS]
The MSCI All-Country World Index .MIWD00000PUS climbed 1.42 percent in its third session of gains. In Europe, the FTSEurofirst 300 index .FTEU3 of top shares hit its highest close in two weeks, jumping 1.65 percent.
Major Wall Street indexes were higher on the Greek austerity plan vote and a mildly encouraging report on pending U.S. home sales.
Pending home sales rose a stronger-than-expected 8.2 percent in May, but a glut of unsold properties remained a drag on the housing market. The latest data followed a mildly encouraging housing report on Tuesday. [ID:nN1E75R1XG]
Equities have rallied on optimism the Greece program would pass, with the S&P up more than 2 percent so far this week.
The Dow Jones industrial average .DJI was up 87.71 points, or 0.72 percent, at 12,276.40. The Standard & Poor's 500 Index .SPX was up 11.72 points, or 0.90 percent, at 1,308.39. The Nasdaq Composite Index .IXIC was up 15.57 points, or 0.57 percent, at 2,744.88.
U.S. crude oil jumped $2.09, or 2.25 percent, to $94.98 per barrel as the Greek parliament vote eased fears that a possible Greek default would derail the global economic recovery and after industry data showed big draws in U.S. crude and gasoline stocks.
The euro EUR= was up 0.39 percent at $1.4424 against the dollar and near the session peak of $1.4447 on expectations the second Greek vote will pass on Thursday.
U.S. Treasuries continued their sell-off into a third day and yields rose to their highest in a month after a $29 billion auction of seven-year notes. It was the third of three auctions this week, with new coupon issuance totaling $99 billion.
Seven-year notes US7YT=RR were last down 22/32 in price to yield 2.42 percent, the highest since the end of May.
The benchmark 10-year U.S. Treasury note US10YT=RR was down 23/32, its yield at 3.1192 percent. The 2-year U.S. Treasury note US2YT=RR was down 1/32, yielding 0.485 percent. The 30-year U.S. Treasury bond US30YT=RR was down 20/32, with the yield at 4.3634 percent.
Spot gold XAU= traded at $1,507.9 an ounce, just below an intraday high of $1,512.31, countering losses earlier in the week that took the price below $1,500. COMEX gold GCcv1 rose 0.59 percent to $1,508.9.
Gold usually gains in periods of greater investor aversion, but the Greek debt crisis and its impact on the euro have caused bullion to act less as a safe-haven asset and more as a commodity.
Demand for the safety of German debt receded, at least temporarily, after the approval of the Greek austerity plan. Read More
0 comments:
Post a Comment