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Wall St. joins Greek debt deal party

Thursday, October 27, 2011 - 01:43

Oct. 27 - Stocks rose swiftly in the U.S., with investors taking their cue from a surge in European equities after a deal on Greek debt was announced following marathon talks between European leaders and the banks. Conway G. Gittens reports.

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The Dow Jones Industrial Average has crossed back above 12,000 for the first time since August. And the S&P 500 finally joins other parts of the stock market in positive territory for the year. The early rally is being powered by positive developments out of Europe. In the wee hours of Thursday, European leaders announced they had reached an agreement with banks to take a 50 percent loss on Greek debt. The bulls are out in Europe as well with a pan-European index of top 300 companies closing at its best level in roughly three months. Robert Halver trades at Germany's Deutsche Boerse. SOUNDBITE: ROBERT HALVER, TRADER, BAADER BANK (ENGLISH) SAYING: "We are all happy in Frankfurt that politics, even the euro zone, is able to move. But to solve the European debt crisis, it's a long-distance run, not a short-distance run." And while there is glee on the trading floor, with stocks up 5 percent, a celebratory Halver admits he knows the crisis is not over. SOUNDBITE: ROBERT HALVER, TRADER, BAADER BANK (ENGLISH) SAYING: "We have definitely hope but the problem is, we have to focus more on economic reforms, even in Italy, because Italy is still the main patient in the euro zone right now. I guess we have a recovery position for the euro zone but the crisis is not all over. We need more reforms." But investors on both sides of the Atlantic see the Greek debt writedown agreement and a plan to boost the euro bailout fund to one trillion euros as welcome signs Europe is finally taking steps to end the crisis. Conway Gittens, Reuters

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Wall St. joins Greek debt deal party

Thursday, October 27, 2011 - 01:43