The euro
rebounded against the dollar and equity markets around the globe surged
to record highs on Friday after euro zone finance ministers agreed in
principle to extend heavily indebted Greece's financial rescue by four
months.
Investors had awaited a
deal all week. As talks for a deal progressed, Germany's DAX index hit a
record intraday high and Britain's top share index closed within 0.5
percent of a 15-year high before the accord was announced.
The euro rebounded and the benchmark 10-year U.S. Treasury note retreated. Europe's leading equities index closed at seven-year highs in anticipation a deal would be reached.
The Greek accord will allow investors to concentrate on the fundamentals that should be driving the market, said Ben Pace, chief investment office at HPM Partners in New York.
"You're seeing a little bit better U.S. economic statistics than you've been seeing over the past three or four weeks. The European statistics have gotten a lot better too," Pace said. "So maybe a relief rally today, because the markets were down as there was a lot of consternation going around."
Surveys indicated on Friday that the euro zone's private sector expanded in February at its fastest pace in seven months, though companies continued to cut prices, suggesting low inflation remains a challenge for policy-makers.
The euro pared losses against the U.S. dollar to trade up 0.1 percent at $1.1377. Against the yen, the dollar pared losses to trade up 0.13 percent at 119.09.
MSCI's all-country world equity index rose 0.34 percent, while the European FTSEurofirst 300 index of top regional shares closed up 0.33 percent at 1,525.21.
The Dow Jones industrial average closed up 154.67 points, or 0.86 percent, to 18,140.44. The S&P 500 gained 12.85 points, or 0.61 percent, to 2,110.3 and the Nasdaq Composite added 31.27 points, or 0.63 percent, to 4,955.97.
The Nasdaq matched an eight-session winning streak from a year ago and inched closer to its March 2000 all-time high reached during the dot-com bubble.
For the week, the Dow rose 0.7 percent, the S&P 500 gained 0.6 percent and the Nasdaq rose 1.3 percent.
The euro rebounded and the benchmark 10-year U.S. Treasury note retreated. Europe's leading equities index closed at seven-year highs in anticipation a deal would be reached.
The Greek accord will allow investors to concentrate on the fundamentals that should be driving the market, said Ben Pace, chief investment office at HPM Partners in New York.
"You're seeing a little bit better U.S. economic statistics than you've been seeing over the past three or four weeks. The European statistics have gotten a lot better too," Pace said. "So maybe a relief rally today, because the markets were down as there was a lot of consternation going around."
Surveys indicated on Friday that the euro zone's private sector expanded in February at its fastest pace in seven months, though companies continued to cut prices, suggesting low inflation remains a challenge for policy-makers.
The euro pared losses against the U.S. dollar to trade up 0.1 percent at $1.1377. Against the yen, the dollar pared losses to trade up 0.13 percent at 119.09.
MSCI's all-country world equity index rose 0.34 percent, while the European FTSEurofirst 300 index of top regional shares closed up 0.33 percent at 1,525.21.
The Dow Jones industrial average closed up 154.67 points, or 0.86 percent, to 18,140.44. The S&P 500 gained 12.85 points, or 0.61 percent, to 2,110.3 and the Nasdaq Composite added 31.27 points, or 0.63 percent, to 4,955.97.
The Nasdaq matched an eight-session winning streak from a year ago and inched closer to its March 2000 all-time high reached during the dot-com bubble.
For the week, the Dow rose 0.7 percent, the S&P 500 gained 0.6 percent and the Nasdaq rose 1.3 percent.
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