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US stocks surge ahead of Greek election

Shares rose on expectations that central bankers around the world were ready to work together to stabilise markets.

US stocks surgeEnlarge
US stocks rose on hopes that central bankers were ready to open the credit valves. (Spencer Platt/AFP/Getty Images)

US stocks closed at a one-month high today ahead of the Greek election that many see as crucial to its future in the euro zone.

Investors piled into stocks on expectations that central bankers around the world are ready to work together to keep money flowing should there be any turmoil following the vote, Agence France-Presse reported.

According to the Wall Street Journal, European Central Bank President Mario Draghi indicated the central bank was ready to open the credit valves, while the Bank of England announced plans to pump more liquidity into the country’s banking system.

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The Standard & Poor’s 500 index rose one percent to 1,342.84, its highest since May 11, Bloomberg reported.

The Dow Jones Industrial Average climbed 115.26 points, or 0.9 per cent, to 12,767.17 and the tech-heavy Nasdaq finished at 2,872.80, up 36.47 points, or 1.3 percent.

But sharemarket gains were hampered by ongoing concerns about the stricken Spanish banking system and the ramifications of a possible Greek exit from the euro zone.

Disappointing US economic data also weighed on sentiment, Reuters added.

According to the BBC, US factory production fell 0.4 percent last month after increasing 0.7 percent in April, as carmakers cut output for the first time in six months.

Reuters said other data indicated consumer sentiment fell to a six-month low in June.
 

http://www.globalpost.com/dispatch/news/regions/americas/united-states/120615/us-stocks-surge-ahead-greek-election