Not only did U.S. stocks soar, the Euro surged the most since July 2010 against the dollar, with the Stoxx Europe 600 Index jumping 1.5 percent and the Standard & Poor’s 500 Index seeing an increase of 2.8 precent, Bloomberg reports.
The S&P 500 topped a key technical level for the first time in more than two months in what could be a bullish signal, Reuters reports.
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U.S. and global stocks rallied as the markets opened Monday morning in response to German Chancellor Angela Merkel and French President Nicolas Sarkozy promising to deliver a plan that will address the Greek debt crisis by the Nov. 3 Group of 20 summit.
Merkel and Sarkozy said they will present a plan to recapitalize European banks, targeting the debit crisis. This alone lifted the hopes of American and European investors.
France and Belgium’s plan to nationalize Dexia, the Franco-Belgian bank, also sparked the sentiment that governments will prevent large lenders from going under, the Economic Times reports.
Just last week U.S. stock indexes roses three days in a row after nearly falling into a bear market. These gains may be an indicator that the U.S. economy is in better shape than analysts expected, the Los Angeles Times reports.
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