World shares mostly higher following Greek bailout progress

AP News
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Posted: Feb 23, 2015 7:10 AM
World shares mostly higher following Greek bailout progress

TOKYO (AP) — World stocks extended gains Monday after Greece and its European creditors reached an agreement that staved off the threat of bankruptcy and exit from the euro, though hurdles remain to cementing the short-term funding deal.

KEEPING SCORE: France's CAC 40 rose 0.1 percent to 4,834.14 and Germany's DAX gained 0.3 percent to 11,086.18. Britain's FTSE 100 was down 0.4 percent at 6,889.07, dragged down by poor earnings from HSBC bank and weakness among commodities stocks. Wall Street looked set for a slower start after Friday's rally to another record high. Dow and S&P 500 futures were both 0.2 percent lower.

GREECE'S DEAL: The four month extension averted bankruptcy and capital controls and ensures banks will have enough money to stock up their ATMs. But the Greek government must present economic reform measures by the end of Monday that are deemed acceptable by creditors and rooted in Greece's previously enacted bailout agreement, which is something the government had promised not to do. Greece's new government has been agitating for more generous terms for its international bailout after several years of punishing austerity.

THE QUOTE: "Greece is solved, so get involved as some say; but this is far from the truth," Chris Weston, IG chief market strategist, said in a commentary. "Judging by our client flows today, traders have been only modestly enthused by the agreement."

ASIA'S DAY: Japan's Nikkei 225 gained 0.7 percent to 18,466.92 and South Korea's Kospi rose 0.4 percent to 1,968.39. Australia's S&P ASX/200 added 0.5 percent to 5,908.00. Hong Kong's Hang Seng was little changed, at 24,836.77, after reopening following Lunar New Year holidays. Shares in Southeast Asia were mixed, and markets in mainland China were still closed.

ENERGY: Benchmark U.S. crude oil fell $1.13 to $49.68 a barrel in electronic trading on the New York Mercantile Exchange. It fell $1.02 on Friday to $50.81.

CURRENCIES: The U.S. dollar was flat against the yen, at 119.06 yen. The euro fell to $1.1314 from $1.1385 late Friday.