WSJ article #4
With the economic struggles all around the world it is very hard now a day to watch stocks rise in price for many consecutive days in a row. The European economy has been one of the worst in recent months. One aspect that greatly contributed to these struggles was the bankruptcy of Greece. The European union had to bail out Greece in order to avoid total economic collapse in the once great country, and ultimately affect the rest of the European Economy in a very negative way. This bailout was not looked at favorably by investors and the overall European stock market suffered after the bailout during already tough economic times. The past seven days have been a different story for the European stock market specifically Stoxx Europe 600. The Stoxx Europe 600 has had a rise in stock price for the past seven days. This span of continued price increase has boosted the Stoxx Europe 600 to its highest price in 18 months. Based on some German investor-sentiment data the recent price increase can be directly related to positive news dealing with Greece’s debt buyback program. “Greece's ASE composite index jumped 2.2% to a six-week high and Greek bonds rallied (Tryphonides).” Greek bondholders just submitted a combined face value of 31.5 billion Euro (about 40.8 Billion USD). This is higher than the goal that was set of 30 Billion Euro. With Greece taking its debt seriously investors are optimistic about them paying their debt back and thus prices have started to increase. Although Greece will not be the world power it was many years ago for a long time they are on the path to recovery after starting at the beginning once again.
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