Could it really be? A plan to bail out the struggling Greek economy
finally appears to be nigh, which is sending stocks and exchange
traded funds (ETFs) up by nearly triple digits this morning.
As the German government approved its share of the massive
Greece bailout, the Central European Bank said it would accept
Greek bonds despite future downgrades. Germany has approved the $30
million loan over the next three years. Finance Minister Schauble
expects the bill to be passed in Germany, and all other eurozone
countries, by the end of the week.
However, analysts remain skeptical about the success of the
bailout, believing that the initial impact will be positive, but
may run into problems in the future when Greece tries to issue
bonds on the open market, according to Stephen Deo, an economist at
UBS in London, stating, "at some point, a debt restructuring
PowerShares Emerging Markets Sovereign Debt (NYSEArca:
) and Continental Airlines (NYSE:
) announced a $3 billion merger that will create the largest global
airline, in an all-stock deal that will give the airline the power
to combat low-cost local rivals and target international markets.
The merger would overtake Delta (NYSE:
) as the top carrier, and serve 144 million passengers in 59
countries. However, the deal must still be approved by the Justice
Department's anti-trust division, and employee unions, which have
been notorious in undoing similar mergers in the past. The final
value of the deal at $3.17 billion.
Claymore NYSE Arca Airline (NYSEArca:
Because of continued concerns over Greece, commodities markets
remain an attractive safe-haven, with gold futures reaching a five
month high at $1,200 an ounce. In recent activity June gold was
traded at $1,185.10 an ounce, up $4.40, or .4% on the Comex
division of the New York Mercantile Exchange.
ETF Securities Gold Trust (NYSEArca:
Consumer spending in March increased by its highest mark in five
months. The 0.6% increase in purchases matched the median
prediction of economists surveyed by Bloomberg, as incomes rose for
the first time this year. Household spending, which accounts for
70% of the economy, is expected to contribute to the expansion in
spending in the coming months as well.
SPDR S&P Retail (NYSEArca:
Aaron Hurst contributed to this article.