The word of the day is "crexit," which was coined by Allianz Chief Economist Michael Heise. This is the idea that Greek will exit from its economic crisis this year. However, many point to a speech given by European Central Bank president Mario Draghi as the turning point for the eurozone crisis as a whole.
European stocks slid deeper into the red on Tuesday and the euro fell on rising expectations that Greece is set for a default despite fresh international efforts to resolve the debt crisis.German Chancellor Angela Merkel sought to ease fears over a possible Greek bankruptcy, saying the 17-country eurozone had to stick together and that an "uncontrolled insolvency" must be avoided.US President Barack Obama warned overnight that the world economy would remain weak until the eurozone crisis was solved, as market anxiety mounted over debt woes in Greece, Spain and Italy.
TORONTO — The Toronto stock market was slightly higher at the open amid rising gold stocks and economic concerns.
The S&P/TSX composite index rose 27.33 points to 12,885.82 while the Canadian dollar inched up 0.02 of a cent to 97.45 cents US.
By Frederic Ruffy: Sentiment Market action has turned mixed late-Tuesday. Global equity markets showed unenthusiastic reaction to news Greece has secured a second bailout. In fact, Greek stock market averages slipped and fell 4 percent Tuesday. However, the euro has been displaying strength this week and was recently near 1.323 against the buck. Stability in the Eurozone currency possibly helped ease some of the recent anxiety about the debt crisis.
Ireland, facing a humiliating bailout, will unveil another harsh budget Tuesday -- on top of some 6.0 billion euros (8.0 billion dollars) of painful tax hikes and spending cuts already flagged to stabilise its crippled public finances.Finance Minister Brian Lenihan will address the Dail, or lower house of parliament, at 1545 GMT, amid intense anxiety on international financial markets over the fast-moving eurozone debt and deficit crisis.
Brian Rezny submits: The word drama comes from a Greek word that means "action". Well, the drama in Greece continued this week, and now the Greek government is considering action: Prime Minister George Papandreou said the country is open to possible legal action against U.S. banks for any role they may have played in the crisis. In question: whether investment banks manipulated Greek bond prices through credit default swaps (these are insurance against default).