Euro zone stocks and low-rated bonds recovered the worst of their losses on Tuesday but remained on edge as Greece looked set to default on a debt repayment to the IMF and plunge deeper into financial crisis.
Tags: European Central Bank
Greek government says discussing draft of third bailout deal
Greek government officials discussed a draft of the country's third bailout agreement drawn up on the basis of discussions with EU/IMF lenders, a government official said on Saturday, boosting hopes a deal could be wrapped up in days.
Greek stock market plunges sharply after re-opening
A black Monday for Greece's stock market. Its benchmark Athens Stock Exchange Index ended the day 16% lower after it re-opened for the first time in five weeks.
Greek banks reopen after three-week closure
Greek depositors lined up outside banks Monday as banks reopened three weeks after closing their doors. But while people can now withdraw money, restrictions remain and, with new taxes, they will have to shell out more for goods and services.
Greece Votes "Yes" on Reforms to Possibly Receive Bailout
Greece surrendered to Europe's demands, approved austerity measures to possibly receive a bailout and finally "Grexit" out of the Euro.
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U.S. stocks fell sharply in heavy trading on Monday and the S&P 500 and the Dow had their worst day since October after a collapse in Greek bailout talks intensified fears that the country could be the first to exit the euro zone.
Greece said it may impose capital controls and keep its banks shut on Monday after creditors refused to extend the country's bailout and savers queued to withdraw cash, taking Athens' standoff with the European Union and the International Monetary Fund to a dangerous new level.
Now that International Monetary Fund head Christine Lagarde has told the Fed to wait to raise interest rates, the IMF staff has followed up with suggestions that the U.S. central bank remake its communications policy and, in a phrase, ditch the dots.
Euro zone leaders will hold an emergency summit on Monday to try to avert a Greek default after bank withdrawals accelerated and government revenue slumped as Athens and its international creditors remain deadlocked over a debt deal.
The European Central Bank must continue its asset-purchasing program to ensure that euro area inflation returns to target levels, despite signs that deflation fears have eased, ECB governing council member Ignazio Visco said on Tuesday.
U.S. and European equities rose to trade near record highs on Tuesday, and the euro tumbled on signals the European Central Bank may accelerate its 1 trillion euro bond-buying program over the next two months.
The euro tumbled on Tuesday and the region's stocks and bonds jumped after the European Central Bank suggested it may speed up its 1 trillion euro bond-buying campaign slightly to account for lower market liquidity in high summer.
The European Central Bank is satisfied with the effects of its bond buying program on the economy and inflation and has no intention of ending it prematurely, ECB Executive Board Member Yves Mersch said on Saturday.
Government bonds sold off again on Tuesday, driving down stocks and helping push the euro sharply higher against the dollar.
