U.S. stocks bounce, euro falls as Greek deadline looms
By Rodrigo Campos
NEW YORK (Reuters) - (This version of the story was refiled to recast headline to reflect U.S. stocks' gains)
Stocks on Wall Street rose in choppy trade on Tuesday and a global equities gauge ticked up, while the euro remained under pressure as Greece grappled with a looming deadline on a debt payment to the IMF.
Greece submitted a new two-year aid proposal to its creditors, calling for debt restructuring in what seemed like a last-ditch effort by Athens to resolve its impasse with lenders. Talks between Greece and its creditors broke down over the weekend, causing Greece to close its banks and impose capital controls.
Greeks are due to vote in a referendum on Sunday that EU partners say will amount to a choice between staying in the euro or leaving.
German Chancellor Angela Merkel played down any hopes of a last-minute deal with Greece on Tuesday and said there will be no new negotiations before the planned referendum.
"Probably the market still has in the back of its mind the idea this is all a bit of a game and eventually they'll come with some sort of accommodation to avoid a worst-case scenario," said Darren Williams, AllianceBernstein's London-based senior economist for Western Europe.
"There is a certain complacency," he said, adding that he expects opinion polls on the Greek referendum vote to keep markets volatile. Continued...