The euro jumped and Asian stocks pared losses on Tuesday after euro zone policy makers agreed to a second bailout package for Greece in marathon talks that went deep into the Brussels night. The single currency jumped around half a cent after euro zone finance ministers approved a 130-billion-euro rescue, with strict conditions, that averts an imminent default by Athens. Reaction from share and commodity markets, which had rallied in recent days on hopes of an agreement on Greece combined with an easing of monetary policy by China, was more muted. "The Greece bailout agreement has already been priced in by the market," said Yoshihiko Tabei, chief analyst of capital markets at Kazaka Securities, before the announcement. MSCI's broadest index of Asia Pacific shares outside Japan pared losses to stand down 0.1 percent after two European Union officials told Reuters an agreement had been reached. Tokyo's Nikkei share average was also 0.1 percent lower at ... Read More

Markets head into the week ahead on a tentative note, even as Greece looks set to get its bailout funds. Analysts have been saying for much of February that the market is ripe for a pullback, but the indices continue to rise, taking the S&P 500 close to its 2011 high and the Dow and Nasdaq to multi-year highs. The S&P 500, in the past week, rose 1.4% to 1361, and it is now up 24% from its October low and nine points below its 2011 high. The Dow, up 1.2% for the week to 12,949 is in reach of 13,000, a key psychological level. It is also at the highest level since May, 2008. "The market continues to work its way higher. We are knocking on the door of the April 29 recovery high. It feels like there are an awful lot of people calling for a correction - or at least ... Read More

World stocks hit a six-and-half-month peak and the euro rallied on Friday as hopes that Greece will seal a long-awaited bailout deal next week fuelled risk appetite. Data showing US consumer prices rose the most in four months in January boosted demand for inflation-protected securities, although it had little impact on stocks. "What this does is alleviate any argument inviting (more quantitative easing)," said Todd Schoenberger, managing director at Landcolt Trading in Wilmington, Delaware. "But all eyes are on Greece, so this shouldn't have an impact on trading." Prices of safe-haven US and German government bonds fell, while Italian and Spanish debt yields dropped on growing hopes that Greece will be able to avert a disorderly default. The country expects to get approval on Monday from euro zone finance ministers to begin a debt swap with private bondholders, a spokesman for the Greek government said. Key Wall Street indexes were little changed, however, as investors mulled ... Read More

John Studzinski of Blackstone Advisory Partners believes that even if the Greek issue isn't resolved to everyone's satisfaction, the likelihood of real contagion is lesser than what people had expected. Talking about the enhanced liquidity situation since the beginning of this year, he mentioned that the year 2012 is going to be in a pause and people will be careful about where the cash will be deployed. Talking about India in particular, Studzinski said that the financial services and the banking system will continue to attract lot of interest. On the other hand, places in India that involve land are going to continue to frustrate foreign capital. Below is the edited transcript of the interview.  Q: We have spent all of January in the midst of all the Davos conversations, what will happen with Greece and it's a minute-by-minute account now of whether Greece has passed the austerity measures or not, it is closer ... Read More