The Euro Bounces on Kicking The Greek Debt Can Down the Road

“Stocks rose around the world, paring their worst monthly performance since August, and the euro strengthened amid speculation nations will pledge more aid to Greece. The cost of insuring bank debt fell the most in six weeks, while U.S. index futures and commodities gained.

The MSCI World (MXWO) Index advanced 0.7 percent at 6:50 a.m. in New York, paring this month’s decline to 3.2 percent. Standard & Poor’s 500 Index futures rallied 1 percent. The euro appreciated to a three-week high against the dollar, and the yen fell against its major peers. The yield on the 10-year German bund climbed seven basis points, while Greek yields slid 30 basis points. Copper increased for a second day and wheat dropped.

European Union leaders will decide on a new aid package for Greece by the end of next month, Luxembourg’s Jean-Claude Juncker, who leads the group of euro-area finance ministers, said yesterday in Paris. More than $1.8 trillion has been erased from the value of stocks worldwide this month as evidence mounted that the U.S. economic recovery is slowing and EU officials struggled to contain the region’s debt crisis.

“There’s a degree of confidence that cooler heads will prevail and the next round of assistance will be forthcoming” for Greece, said Robert Rennie, chief currency strategist in Sydney at Westpac Banking Corp.

The Stoxx Europe 600 Index climbed 0.9 percent as eight shares rose for every one that declined and all 19 industry groups advanced. Alpha Bank SA and EFG Eurobank Ergasias SA led a rally in Greek banks, surging more than 5 percent. BASF SE, the world’s biggest chemicals maker, jumped 3.8 percent.”

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