Stocks and euro gain on optimism over Greek aid

Stocks rose worldwide, paring the biggest monthly decline since August, and the euro gained amid speculation nations will pledge more aid to Greece. Commodities advanced, and Treasuries erased losses after US economic reports missed forecasts. The MSCI All-Country World Index increased 1 per cent in New York, paring last month's loss to 2.8 per cent. The euro climbed to a three-week high of $1.4424 (Dh5.2971), and the yen fell against its 16 major peers. Among ten-year bonds, German bunds added five basis points to 3.02 per cent, Greek yields slid 23 basis points to 15.93 per cent and Treasuries dropped to 3.06 per cent from 3.10 per cent. Oil rose, and wheat dropped. European Union leaders will decide on a new aid package for Greece by the end of this month, Luxembourg's Jean-Claude Juncker, who leads the group of Eurozone finance ministers, said yesterday in Paris. More than $1.8 trillion was erased from the value of stocks worldwide last month through yesterday as evidence mounted that the US economic recovery is slowing and EU officials struggled to contain the region's debt crisis. "Markets are focused on the debt crisis," said Tom Mangan, who helps oversee $2.7 billion at James Investment Research Inc in Xenia, Ohio. "We have had a pattern where the impact on the dollar is positive, US bonds do better and stocks fade every time the Greek crisis rears its ugly head, and the other way around. This will continue until we get it resolved." The dollar beat stocks, bonds and commodities for the best performance in May. from / Gulf News