Global Stocks rose sharply today (November 3) as Greek Prime Minister George Papandreou bowed to massive political pressure to scrap a referendum on a European bailout plan. Papandreou has withstood demands to step down and says he is seeking emergency talks with the opposition, in an apparent effort of forging a national unity government.
COMMENT: In Europe, Britain's FTSE 100 was up 1.1%, France's CAC-40 rose 3% and Germany's DAX was also 3% higher. In the U.S., the Dow Jones industrial average rose 1.2%, while the broader S&P 500 index rose 1%. As for the euro, it rose 0.6% at $1.37. Gains in Asia were very small.
Thanks to France's Sarkozy and Germany's Merkel , who met with Papandreou at an emergency session in Cannes yesterday (November 2), a major Greek meltdown has been headed off. Presumably, as the G2o opens today, there will be discussions of moving forward with the EU/IMF-approved plan to bailout Greece until January.
