European stocks responded well to a new bail-out package for Greece.
May 31, 2011- Stocks throughout Europe were up sharply on Tuesday thanks to speculation that the European Union will provide some additional aid to Greece and Asian stocks were spurred on by data from Japan indicating strong manufacturing numbers. U.S. stocks open higher as well and were up 100 points in early trading.
The increases in Europe came after Germany said they might abandon their push to reschedule early the Greek debt which may lead to another round of aid for the country. Worries and concern with the Greek economy because of such a large amount of public debt have been present for more than a year. The International Monetary Fund and the EU have previously approved billions in loans to Greece yet the country continues to have their problems financially.
Both Germany and other powers in Europe are calling for any additional aid to Greece to be tied to stricter measures calling for cutbacks but those that support more aid for the struggling country say the Greek economy is still too weak to withstand any more cutbacks.
In Asia stocks were up as well with the Hand Send closing at 2% higher and the Shanghai Composite rising by 1.4%. Stocks in Japan were up as well due to a projected increase of 8% in output for May and over 7.5% for June. If the numbers pan out for June then they will be back to where they were prior to the March earthquake.
