Many investors and traders say developments in Greece are likely to continue to dominate daily trading at least until Sunday, when Greeks are due to vote on the conditions set by the country’s creditors for further aid.
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In addition, month- and quarter-end investment flows on Tuesday, which can involve investors adjusting some of their short bets, aggravated the sudden jumps in price, said Simon Derrick, chief market strategist at BNY Mellon. Greece failed to repay a loan to the global Monetary Fund that was due Tuesday.
A series of events over the weekend left Greece perilously close to defaulting on its debts.
Investors are anxious that Greece could leave the euro region if no agreement is reached.
“Investors are taking a collective sigh of relief that an armageddon type of scenario didn’t occur with respect to Greece”, said Adam Sarhan, chief executive of Sarhan Capital in New York. “If we get a credible proposal that leaves even a sniff of a viable solution, we’ll be the first to take it”, a senior finance official told reporters in Brussels, Reuters reported.
The Dow Jones industrial average rose 23.16 points, or 0.13 per cent, to 17,619.51, the S&P 500 gained 5.48 points, or 0.27 per cent, to 2063.12 and the Nasdaq Composite added 28.40 points, or 0.57 per cent, to 4986.87.
After closing at its highest perch since early February yesterday, the CBOE Volatility Index (VIX) is up 0.1 point, or 0.5% at 18.95.
Despite rallying Wednesday, stocks are lower for the week.
THE QUOTE: The market is still down for the week after plunging on Monday as talks between Greece and its creditors broke down and the Greek government called for a popular vote on the bailout, which came as a surprise to the country’s creditors.
Back then, the fear was that a financial crisis would spread from Greece to the rest of Europe “because these economies were very fragile”, Cavanaugh said.
The US dollar soared against other major currencies on Wednesday as positive jobs data from the country pointed to stronger US economy. A separate survey by the Institute for Supply Management showed manufacturing growth improved in June.
Investors were also looking forward to the government’s monthly jobs report that will be published on Thursday.
WASHINGTON (AP) – A document obtained by The Associated Press indicates the Justice Department is investigating whether airlines are colluding to grow at a slower pace as part of an effort to keep airfares high.
The latest turns in Greece’s debt saga have whipsawed stocks in recent weeks. Gold fell $7.20 to $1,171.80 an ounce, silver lost 11 cents to settle at $15.55 an ounce and copper fell two cents to $2.62 a pound.
Benchmark US crude rose $1.14 to close at $59.47 a barrel in New York.
The S&P energy sector fell 1.3 per cent, the only S&P sector in the red on Wednesday. Crude-oil futures declined 4.2% to $56.96 a barrel.
In currency trading, the euro was down 0.3 percent at $1.1186 while the dollar fell 0.3 percent to 122.24 yen.
Bond price rose. The yield on the 10-year Treasury note fell to 2.33 percent from 2.47 percent late Friday, a big move.
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