After Greece successfully raised 1.625 billion euros ($2.03 billion) in short-term 6-month Treasury bills, at a yield of 4.65 percent, stock index futures in Europe and the U.S. trended sharply upwards. Traders registered their optimism in the ability of the euro-zone to weather its sovereign debt crisis and muddle through without falling into another recession.
Futures on the Dow Jones Euro Stoxx 50 index were up 50 points to 2,731, while FTSE 100 futures gained 99.5 points to 5,223.50.
Across the Atlantic, Dow Jones Industrial Average index futures rose 79 points to 10,260.
The yield that Greece paid to borrow the $2 billion was slightly lower than the 5 percent interest rate it pays to borrow from the 110 billion euro fund that was concocted somewhat belatedly by the European Union and the International Monetary Fund.
On the negative side, Moody’s Investors Service downgraded the sovereign bond rating of Portugal by two degrees, rating it at A1. At that level, Portuguese bonds are still – barely – investment grade.
That rating change pushed gold futures higher in New York trading, up 1.5 percent to $1,216.30 per troy ounce.
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