U.S. Stocks Rally on Growing Prospects for Bailout of Greece
U.S. stocks rallied, sending the Dow Jones Industrial Average up the most since July, as growing prospects for a bailout of Greece eased concern deteriorating government finances will derail the global economic recovery.
EU leaders will discuss Greece’s plans to reduce the region’s biggest deficit when they meet Feb. 11, and European Central Bank President Jean-Claude Trichet’s decision to leave a meeting of policy makers in Sydney one day early fanned speculation that officials will agree on aid.
Fitch Ratings analyst Brian Coulton said an EU bailout for Greece is a “possibility” and not “assured.” He spoke on a conference call today. Equities trimmed gains earlier, and European shares erased a rally, after Fitch Ratings analysts also said the U.K. needs to pledge further measures to rein in its budget deficit, and the medium-term outlook for Greece is “cloudy.”