Market mounts solid gains adding 105 points with basic materials leading with a 3% gain on the back of Freeport-McMoRan Copper (FCX), United States Steel (X) and Potash Corp (POT).
Greece still dominates the headlines. Fears of bankruptcy have been calmed after European leaders committed to helping out the deeply indebted country. Details of a possible bailout are still unclear but most investors now believe the worst case scenario is no longer on the table. Greek debt rallied but the euro saw some continued selling as fears of contagion still exist. Spain and Portugal are also in difficult circumstances. This crisis has highlighted the largest drawback to a collective currency for multiple, distinct economies: monetary policy is no longer a viable tool in fighting recessionary forces. And, the good is thrown in with the bad so Germany must be grouped with Greece both having the same currency, although very different government fiscal situations.
Standard & Poor's companies now hold $2.18 trillion in cash. Companies are continuing to hoard cash in these uncertain economic times.
Yesterday, Iran announced it wants to eliminate Gmail in the country and begin a government-run email service. And, today we hear Ahmadinejad stating that they have already enriched uranium to 20% and says the country has the capability to create weapons grade nuclear fuel if it wants to though he claims the country has no desire to create a bomb.
Market Rallies as Materials Bounce
Market mounts solid gains adding 105 points with basic materials leading with a 3% gain on the back of Freeport-McMoRan Copper (FCX), United States Steel (X) and Potash Corp (POT).
Greece still dominates the headlines. Fears of bankruptcy have been calmed after European leaders committed to helping out the deeply indebted country. Details of a possible bailout are still unclear but most investors now believe the worst case scenario is no longer on the table. Greek debt rallied but the euro saw some continued selling as fears of contagion still exist. Spain and Portugal are also in difficult circumstances. This crisis has highlighted the largest drawback to a collective currency for multiple, distinct economies: monetary policy is no longer a viable tool in fighting recessionary forces. And, the good is thrown in with the bad so Germany must be grouped with Greece both having the same currency, although very different government fiscal situations.
Standard & Poor's companies now hold $2.18 trillion in cash. Companies are continuing to hoard cash in these uncertain economic times.
Yesterday, Iran announced it wants to eliminate Gmail in the country and begin a government-run email service. And, today we hear Ahmadinejad stating that they have already enriched uranium to 20% and says the country has the capability to create weapons grade nuclear fuel if it wants to though he claims the country has no desire to create a bomb.
