CANADA STOCKS-TSX rises on Greece hopes, strong resources

Toronto’s main stock market index gained strongly at the open on Tuesday, supported by firm oil and gold prices and speculation that a rescue plan was in the works for Greece’s debt problems. The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE rose 111.31 points, or 1.0 percent, to 11,226.61. (Reporting by Ka Yan Ng; editing by Peter Galloway) NEW YORK (Reuters) – Stocks rose broadly on Tuesday, with the Dow on track for its largest daily percentage advance since July, on reports euro zone countries will come to the aid of debt-stricken Greece. | Video President Obama wants to get tough on countries who undervalue their currency. Will the U.S. [Read the full article]

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Brazilian stocks rose and the real strengthened in early trading on Tuesday as hope over a bailout of heavily indebted Greece lifted investor spirits. The benchmark Bovespa stock index .BVSP added 1.96 percent to 64,393.98 and was on track to notch a second straight session of gains. Equities had retreated globally last week as fiscal woes in peripheral euro zone countries Portugal, Spain and Greece left investors uncertain about the strength of the global economic recovery. But after European Central Bank President Jean-Claude Trichet cut short a trip to Australia, reportedly to attend a special European Union summit, prompted market speculation that initiatives are in the works to help resolve Greece’s debt problems. For details, see [ID:nSGE61801C] “There’s relief,” said Joao Simoes, a partner at Duna Asset Management in Sao Paulo. “It would be cheaper to address the problem now” than to let worries ripple further. [Read the full article]

Greek financial problems are a common concern for the euro zone, the European Union’s top monetary official said on Tuesday. “The difficult situation in Greece is a matter of common concern for the euro area … There is serious risk of spillover to other parts of the euro area,” Economic and Monetary Affairs Commissioner Joaquin Almunia told the European Parliament. He said the executive European Commission fully supported Greece’s fiscal programme, which envisages cutting the country’s budget deficit to below the EU cap of 3 percent of gross domestic product in 2012 from last year’s 12.7 percent. But the plan carried risks, such as worse economic growth than expected or insufficient tax revenues, so the Greek government must be ready for additional fiscal cuts. “There are risks to the programme targets … the macroeconomic scenario is rather optimistic,” he said. [Read the full article]

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Greece must get its own house in order itself as the European Central Bank cannot bail it out, two ECB policymakers reiterated on Tuesday. “Greece, being a euro country, is under the regime of euro regulations, and so the main policy approach is of course that they have to solve the problems themselves,” ECB Governing Council member Ewald Nowotny said in an interview. “The ECB have a clear mandate … we have a clear no-bailout clause,” Nowotny said in an interview with FT Alphaville, a blog published by the Financial Times newspaper. Fellow Governing Council member Erkki Liikanen told Finnish broadcaster YLE: “We wait and trust that Greece will carry out those actions it announced last week.” “It is very important that we follow the stability pact guidelines and that all countries get their debt under control. Otherwise rates will rise and it will make paying back debt more difficult,” Liikanen said. [Read the full article]

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