Greece will receive much more aid than initially expected, German lawmakers said on Wednesday after a briefing with the International Monetary Fund, reviving markets that had been spooked by fears of a Greek debt default.
U.S. stock index futures rose on Wednesday, following a steep sell-off in the previous session, as investors awaited the Federal Reserve's interest rate decision and a statement on the economy.
German politicians came under pressure Wednesday to cast aside their doubts over a bailout for Greece, with markets increasingly alarmed that Athens may default on its debt and trigger a meltdown elsewhere in Europe.
U.S. stock index futures rose modestly on Wednesday, following a steep sell-off in the previous session, as investors awaited the Federal Reserve's interest rate decision and a statement on the economy.
Fears that a planned rescue of Greece could stall and extend the financial crisis to other euro zone countries hit European markets on Wednesday as investors worried that Athens may default on its debt.
European Union President Herman Van Rompuy said on Wednesday that negotiations on Greece's debt are well on track, and there is no question of restructuring it.
Greece's exploding debt crisis eclipsed all else on financial markets on Wednesday, knocking down global stocks and pushing the euro for a time to a one-year low against the dollar.
The euro tumbled to a one-year low against the dollar and Asian stocks fell as cuts in Greece and Portugal's credit ratings set off a flight to safety on fears that the euro zone's debt problems are spreading.
The Federal Reserve is expected on Wednesday to repeat its vow to keep interest rates at rock bottom levels for an extended period while acknowledging that the U.S. economic recovery is getting stronger.
The AUD has taken a dive overnight following announcements from credit rating agency Standard and Poors in relation to their credit ratings for both Portugal and Greece.
The Australian Dollar opens lower against the greenback on Wednesday at 0.9150.
Rating agency Standard and Poor's slashed Greek debt to junk status on Tuesday and also downgraded Portugal, as investors worried political pressures could block a multi-billion euro bailout of Greece.
U.S. stocks tumbled on Tuesday as downgrades of Greece and Portugal fueled fear about euro-zone economic stability, and a grilling of Goldman Sachs on Capitol Hill heightened the possibility of financial reform.
U.S. stocks fell on Tuesday as downgrades of Greek and Portuguese debt reignited fears of defaults in the euro zone, while a grilling for Goldman Sachs on Capitol Hill raised the specter of tough financial reform.
The U.S. Federal Reserve opened a two-day meeting on Tuesday that is widely expected to end with a decision to leave interest rates on hold near zero and a fresh commitment to keep them there for an extended period.
U.S. stocks tumbled on high volume on Tuesday as investors shunned risk after the credit ratings for both Greece and Portugal were downgraded.
Standard & Poor's on Tuesday downgraded Portugal's ratings, citing concerns about its ability to deal with high debt levels and urged more measures to cut the country's budget deficit.
U.S. stocks slid to session lows on Tuesday after the credit ratings of both Greece and Portugal were cut, escalating worries about their sovereign debt.
Greek bonds and bank shares sank to new lows on Tuesday as a budget expert from Germany's ruling party pressured private banks to accept a discount on the Greek debt they own, spreading the pain of an international bailout.
World stocks remained troubled by worries over Greek debt on Tuesday after Germany demanded new austerity measures, offsetting strong U.S. earnings, and driving down the euro on contagion fears.
Germany said on Monday it could offer aid for Greece within days if it agreed to painful new austerity measures, but rescue jitters pushed the cost of insuring against a Greek debt default to a record high.
Uncertainty over an aid package for Greece pushed up its borrowing costs to a 12-year high on Monday, with demands from Germany for further austerity measures before aid is granted heightening the tension.
