Global stocks, oil rally on Greek plan; dollar falls
By Ryan Vlastelica
NEW YORK (Reuters) - Stock markets rallied around the world on Tuesday while the U.S. dollar fell after the new Greek government dropped calls for a write-down of its foreign debt, easing concerns about growing instability in the euro zone.
Gold, which is viewed as a safe-haven investment, fell on the day while copper had its biggest one-day jump since May 2013. Oil prices also continued their recent rebound, up for a fourth straight positive day.
The Greek government, led by the left-wing Syriza party that won elections just over a week ago, on Monday ditched its stance of calling for a reduction of foreign debt and proposed ending a standoff with its creditors by swapping the debt for new growth-linked bonds.
"The market is beginning to see signs of some stability coming into oil and the Greek situation seems to be tilting toward the side of what the market is looking for, which is a retreat from its call for a debt writedown," said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.
The MSCI International ACWI Price Index .MIWD00000PUS rose 1.4 percent, while the pan-European FTSEurofirst 300 index .FTEU3 ended 0.8 percent higher. The Greek banking index .FTATBNK soared 18 percent and Greek bond yields fell sharply.
The Dow Jones industrial average .DJI rose 305.36 points, or 1.76 percent, to 17,666.4, the S&P 500 .SPX gained 29.18 points, or 1.44 percent, to 2,050.03 and the Nasdaq Composite .IXIC added 51.05 points, or 1.09 percent, to 4,727.74.
Gains in U.S. markets were broad, with all 10 primary S&P 500 sectors up on the day.
The benchmark 10-year U.S. Treasury note US10YT=RR was down 1 point, the yield at 1.7813 percent. Continued...