Possibility of Greek Bailout Increases Shares

Forex brokers are keeping an eye on Greece right now. News in June of hope for a Greek bailout gave major indexes their first weekly gain since April 2011.  The New York Times reported on June 17 that stock prices evened out on Friday and the euro was higher. According to the paper, shares increased as Germany agreed not to make private investors bear the burden of a new bailout package for Greece.

A savvy forex broker pays close attention to announcements of government bailouts that may affect forex exchange rates. The New York Times reported that at the close, the Dow Jones industrial average was 42.84 points higher while the Standard & Poor’s 00-stock index rose 3.86 points. The Dow’s 0.4 percent increased represented the first weekly gains since April 29.

In European foreign exchange markets, the CAC-40 in Paris increase 31.43 points to 3,823.74. The DAX in Germany rose 53.85 points and the FTSE in London increased 16.13 points.  The New York Times reported that the euro continued to be hit by various announcements, including the development about the Greek bailout. However, analysts understand that the issues in the euro zone are not fully dependent on the developments in Greece.