Global stocks rally, euro jumps on hopes for Greece
By Caroline Valetkevitch
NEW YORK (Reuters) - Global stock markets rallied while the euro rose broadly on Friday on optimism that last-minute concessions by Greek Prime Minister Alexis Tsipras would clinch a deal with international creditors and save the country from bankruptcy.
The S&P 500 jumped 1.2 percent, while equities markets in Europe and China also ended sharply higher.
The euro jumped more than 2 percent against the yen and investors cut safe-haven holdings in U.S. Treasuries. Late in the session, the 30-year bond's yield had notched its biggest two-day increase in two years.
The volatile week saw Greece's banks remain shut after the country voted in a referendum to reject previous bailout terms, raising chances of a "Grexit" from the euro.
The new Greek plan is by no means a done deal. Greece's parliament still needs to throw its weight behind the proposals and trust with creditors needs to be rebuilt. But investors saw the latest news as reason to be upbeat.
"Investors are betting that a Greek deal will be stuck by this Sunday, and that reduction of risk is boosting stocks today. The removal of the risk of an exogenous shock means better market psychology," said Jim McDonald, who helps oversee $960 billion in assets as chief investment strategist at Northern Trust Asset Management in Chicago.
The Dow Jones industrial average rose 211.79 points, or 1.21 percent, to 17,760.41, the S&P 500 gained 25.31 points, or 1.23 percent, to 2,076.62 and the Nasdaq Composite added 75.30 points, or 1.53 percent, to 4,997.70.
Indexes finished off their highs of the session after Federal Reserve Chair Janet Yellen said she expected the Fed to raise interest rates at some point this year. Continued...