Stocks see gains as euro drops

Published:  25 May at 6 PM

On Thursday, global stocks saw gains as the euro dropped on data suggesting that Europe's debt crisis was exacerbating a global economic slowdown, which added to investor woes about Greece's possible departure from the eurozone.

It was a volatile session, as investors seeking for bargains first bought oil, gold, and equities, which were recetnly beaten down by worries that a Greece departure would worsen the eurozone debt issue.

The demand for growth-oriented assets dropped as fears over the eurozone’s hindrance on the world economy came back. For a second day in a row, a wave of purchasing emerged right before Wall Street's finish.

Bruce McCain, who is chief investment strategist with Key Private Bank in Cleveland, said the market has gone back far enough that investors are assessing if what is known has been priced the worst. However, with the eurozone’s issues, prices are still more or less soft, he added.

Speculation of further coordinated efforts by major central banks in order to check any more decline of the EU debt crisis helped stabilize the bond yields of Italy, Spain, and other vulnerable eurozone members. However, yields remained at rates considered unsustainable, as this curbed the safe-haven demand for German and American government debt.