The euro currency surged from 1.4118 to above 1.43 against the U.S. dollar Thursday morning as more details of the European summit on Greece emerged.
Euro zone officials are willing to allow a Greek default “that would involve a bond buyback, a debt swap, but no new tax on banks,” according to Reuters.
The report noted that “A draft summit statement…showed leaders were also considering a sweeping expansion of the role of their EFSF rescue fund to help states sooner, recapitalize banks and intervene in the bond market in a drive to halt contagion.”
In addition, “German Chancellor Angela Merkel and French President Nicolas Sarkozy crafted a common position on a second Greek bailout in late night talks in Berlin with ECB President Jean-Claude Trichet, who appears to have reversed the bank’s stance.”
While European markets rallied alongside the euro currency on Thursday, the report cautioned that “Thursday’s summit is very unlikely to mark a complete resolution of the crisis, as Merkel herself acknowledged earlier this week…A second bailout may simply keep Greece afloat for a number of months before a tougher decision has to be made on writing off more of its debt.”
U.S. equity markets climbed as well, with the Dow Jones Industrial Average (DJIA) up 117.50 points, or 0.9%, at 12,689.41.
Gold futures showed a muted reaction to the European news, as the yellow metal held near unchanged at $1,601.01 per ounce.
Colossus Appoints Former Barrick Executive to Board
- In 2009, Mr. Anthony was appointed Chief Operating Officer of African Barrick Gold, which listed on the FTSE in 2010 with a market capitalization of $3.8 billion.
- Mr. Anthony graduated from Queens University in 1979 with a Bachelor of Science in Mining Engineering (Mineral Processing)."
- In order to make room for Mr. Anthony, Dr. Vic Wall agreed to step down as a director of the Company, but will maintain his current Vice President, Exploration title and will continue to guide all exploration efforts at Serra Pelada.
