Following days of exhausting political drama, high-level brinkmanship and stern rhetoric in both public and private statements, the red-eyed leaders of Europe's leading financial institutions reached a deal Thursday with Greece's governing coalition to impose further austerity measures on that country in exchange for a €130 billion bailout ($172.56 billion).
Greek leaders clinched a long-stalled deal on reforms and austerity measures needed to secure a bailout and avoid a messy default, government sources said, hours before the country's financial backers were to meet in Brussels on Thursday. The euro and European stocks strengthened on news of the breakthrough.
The European Central Bank held interest rates at a record low on Thursday, seeing tentative signs of economic stabilization, but refused to say what part it might play in averting a ruinous Greek default.
Greek political leaders have clinched a deal on austerity measures needed to secure a bailout to keep the country afloat, two government sources said on Thursday.
The European Central Bank left interest rates unchanged on Thursday and financial markets' attention will now shift to whether the bank is ready to help Greece avoid a messy default.
Stock index futures slipped on Thursday as Greek leaders had not yet reached a deal on fiscal reforms and ahead of policy decisions from the Bank of England and the European Central Bank and data on the U.S. labor market.
Gold edged up along with crude oil and the euro on expectations the Greek prime minister's presence in Brussels Thursday signals a likelihood his nation will receive desperately needed bailout money.
European stock markets and the euro extended two months of gains on Thursday as Greece edged closer to a bailout deal and investors bet a brace of central bank meetings would offer further support for the move into riskier assets.
All eyes will be on what the European Central Bank is willing to do to help Greece when it holds its monthly policy meeting on Thursday, with interest rates expected to stay on hold ahead of a major funding operation later this month.
European stock markets opened with gains Thursday as investors anticipate a successful resolution to the Greek debt deal that would allow the eurozone country to avoid a default.
The rally in the euro and European shares advanced on Thursday as Greece edged closer to a bailout deal and on expectations the Bank of England and the European Central Bank will maintain support for the move into riskier assets.
Asian shares struggled but the euro recovered on Thursday, as markets were left without a clear direction after Greek political leaders failed again to conclude a deal for a bailout package, which Athens needs to avoid a messy debt default.
Asian shares and the euro struggled Thursday, as sentiment grew cautious after Greek political leaders failed to conclude a deal for a bailout package crucial to avoiding a messy debt default.
Japan's Nikkei average eased from a three-month high to trade below 9,000 Thursday amid uncertainty over the outcome of the Greek bailout talks.
Greek political leaders failed early on Thursday to sign off on a tough reform and austerity program, the price of a new international bailout for the nation, but Prime Minister Lucas Papademos said they would try to strike a deal within hours.
Stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.
Stocks closed flat in another thinly traded session on Wednesday as Greece remained in a standstill over accepting tough reforms in exchange for a bailout critical to avoiding a chaotic default.
Global securities, whether stocks, commodities or currencies, held earlier gains or losses Wednesday as the world awaited the outcome of talks between debt-choked, strife-torn Greece and benefactors demanding more tax hikes and government budget cuts in exchange for bailout money.
Greece will likely fail to achieve sustainable debt levels if it only resorts to a 70 percent reduction in the value of bonds held by private creditors, Standard & Poor's warned on Wednesday, putting pressure on the ECB to also take losses.
European Central Bank policymakers are still divided on what contribution the ECB could make to a restructuring of Greece's sovereign debt, two euro zone monetary policy sources said on Wednesday.
Stocks gave up early gains on Wednesday as the Dow hovered at its highest level in nearly four years and investors waited for Greece to accept tough reforms in exchange for a new bailout.
Greek parties will try on Wednesday to agree to a reform deal in return for a new EU/IMF rescue to avoid a chaotic default, after repeated delays which have prompted warnings that the euro can live without Athens.
