2 Feb 2015
US stocks closed at highs as Varoufakis hints Greece's solution could be solved soon
FXStreet (San Francisco) - Strong day across Wall Street as shares traded in a cocktail of situations. Good news from Greece after the 'constructive meeting' in between UK's George Osborne and Greek Finance Minister Yanis Varoufakis; plus rally in oil prices as well as some short covering in stocks.
In an interview with the Financial Times, Varoufakis commented that Greece proposed ending the dispute with its creditors by swapping its outstanding debt for new bonds linked to growth. He also said that the Greek government would no longer call for a cut in its €315 billion of foreign debt.
It seems that the market has assumed that the Greek Finance Minister Varoufakis is a 'normal' and not a radical man.The communication department of the ministry and the minister himself through his Twitter account has been contrasting information and sharing documents published previously by Varoufakis during his stage as professor.
Furthermore, UK Chancellor of the Exchequer George Osborne gave a boost to the Greek situation after affirming in his Twitter account: "Constructive meeting with Greek finance min @yanisvaroufakis. Standoff between Greece & Eurozone fast becoming biggest risk to global economy." Then market assumed the eurozone/Greece situation could be solved sooner than expected.
On the American desk, investor are starting to put in context the earnings season with several companies posting better-than-expected reports. In addition, economic reports showed that Americans are saving more money buy spending less as Personal income rose 0.3% in December, in contrast from 0.3% decline in spending for the same month.
US stocks closed with solid gains as major averages rallied in the last hour. All sectors finished Monday up for the day. Energy shares led the market with 3.10% gains in the day; followed by the Technology sector (+2.93%) and Telecomm (+1.55%).
The Dow Jones advanced 1.104% on the day to close at 17,361.04; the S&P 500 recovered the 2,000 level after climbing 1.30% to 2,020.85; the Nasdaq Composite rose 0.89% to 4,676.69. Small caps in the figure of the Russell 2000 closed 0.87% positive at 1,175.51.
Top gainers in big caps were: China Mobile $CHL (+2.85%); Exxon Mobil $XOM (+2.47%); and Microsoft $MSFT (+2.18%). To the downside, losers were the Brazil-based drinks company Ambev $ABEV (-1.22%); Facebook $FB (-1.21%); and Google $GOOG (-1.13%).
On commodities, oil crude jumped 3.26% to $49.82. While gold closed 0.3% down at $1,275.30.
In an interview with the Financial Times, Varoufakis commented that Greece proposed ending the dispute with its creditors by swapping its outstanding debt for new bonds linked to growth. He also said that the Greek government would no longer call for a cut in its €315 billion of foreign debt.
It seems that the market has assumed that the Greek Finance Minister Varoufakis is a 'normal' and not a radical man.The communication department of the ministry and the minister himself through his Twitter account has been contrasting information and sharing documents published previously by Varoufakis during his stage as professor.
Furthermore, UK Chancellor of the Exchequer George Osborne gave a boost to the Greek situation after affirming in his Twitter account: "Constructive meeting with Greek finance min @yanisvaroufakis. Standoff between Greece & Eurozone fast becoming biggest risk to global economy." Then market assumed the eurozone/Greece situation could be solved sooner than expected.
On the American desk, investor are starting to put in context the earnings season with several companies posting better-than-expected reports. In addition, economic reports showed that Americans are saving more money buy spending less as Personal income rose 0.3% in December, in contrast from 0.3% decline in spending for the same month.
US stocks closed with solid gains as major averages rallied in the last hour. All sectors finished Monday up for the day. Energy shares led the market with 3.10% gains in the day; followed by the Technology sector (+2.93%) and Telecomm (+1.55%).
The Dow Jones advanced 1.104% on the day to close at 17,361.04; the S&P 500 recovered the 2,000 level after climbing 1.30% to 2,020.85; the Nasdaq Composite rose 0.89% to 4,676.69. Small caps in the figure of the Russell 2000 closed 0.87% positive at 1,175.51.
Top gainers in big caps were: China Mobile $CHL (+2.85%); Exxon Mobil $XOM (+2.47%); and Microsoft $MSFT (+2.18%). To the downside, losers were the Brazil-based drinks company Ambev $ABEV (-1.22%); Facebook $FB (-1.21%); and Google $GOOG (-1.13%).
On commodities, oil crude jumped 3.26% to $49.82. While gold closed 0.3% down at $1,275.30.