The Dow Jones rose115.26 points, or 0.91 percent, to close at 12,767.17, now above its 50 DMA for the first time since May. The S&P 500 rose 13.74 points, to close at 1,342.84. The Nasdaq rose 36.47 points, to close at 2,872.80.
Upcoming Greek elections could force volatility in the Euro and other major currency pairs,
No regional government has defaulted on its debt in the Euro’s 13 year history, and most expect that a Greek default would force it to leave the Euro zone. The size of Greek economy suggests that it should have relatively little impact on the zone. Yet the most significant risk is that a Greek default spread to Spain and Italy.
We can gauge overall fear of Greek default by the yields investors require for long-dated bonds; high yields show strong expected risk of default. An extremely negative correlation between Greek Government 10-Year Bond Yields and the Euro/US Dollar emphasizes the importance of the weekend’s elections. If Greek 10-Year bonds rise sharply as traders prepare for default, then the EUR/USD can continue to plummet..
Crude rose 12 cents to close at $84.03. A week ago, it settled at $84.10 this is down 7 cents. Gold was up nearly $9 to close at $1627.30.
On the M&A front, business-software company Yammer agreed to a takeover bid from Microsoft for $1.2 billion. China granted conditional approval for United Technologies to take over aircraft parts maker Goodrich in a deal valued around $16.5 billion, saying Goodrich needed to divest or sell parts of some businesses.