Euro bounces back, global stocks up after Greek vote

Mon Jan 26, 2015 5:43pm EST
 
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By Caroline Valetkevitch

NEW YORK (Reuters) - The euro rebounded from two days of sharp losses on Monday even after an anti-bailout party was victorious in Greek elections, while global stock indexes edged up on confidence in the European Central Bank's new money-printing program.

The electoral results spurred concern over new instability in the euro zone, although the possibility of Greece leaving the bloc was considered remote.

Stocks continued their ECB-driven rally, and energy company share gains helped U.S. stocks to end higher.

The ECB announced a massive bond-buying plan last Thursday meant to buoy the flagging euro zone economy, where inflation has turned negative.

"There was a lot of trepidation in the market going into the Greek election ... but by this morning the Syriza win was priced into the market already," said Robert Francello, head of equity trading for Apex Capital in San Francisco.

MSCI's global share index .MIWD00000PUS rose 0.2 percent, while an index of European shares .FTEU3 ended up 0.6 percent.

On Wall Street, the Dow Jones industrial average .DJI rose 6.1 points, or 0.03 percent, to 17,678.7, the S&P 500 .SPX gained 5.27 points, or 0.26 percent, to 2,057.09 and the Nasdaq Composite .IXIC added 13.88 points, or 0.29 percent, to 4,771.76.

A blizzard bearing down on New York emptied Wall Street offices on Monday. But stock exchanges, including the New York Stock Exchange, were expected to be open for normal operating hours on Tuesday.   Continued...

 
A stock exchange trader works at his screen at the stock exchange in Frankfurt January 26, 2015.  REUTERS/Kai Pfaffenbach