Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why the FTSE Is Moving Up Midday

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

The Greek debt crisis has moved one step closer to resolution today after private investors were coaxed into forgiving 100 billion euros -- equivalent to $131.7 billion -- of debt. That amounts to the largest sovereign restructuring in history, and at the moment, avoids a technical default. Despite all this, the FTSE 100 (INDEX: ^FTSE  ) was largely flat on the news and only moved northward after American employment numbers showed that the U.S. economy added 227,000 jobs in February while unemployment remained at 8.3%. After the jobless data, the FTSE moved from down 0.05% to up 0.29% at 2 p.m. in London trading.

Of course, with any progress in Greece, moving "one step closer to resolution" means all participants had to be forcibly shoved forward. Nothing seems to come easy in the tug-of-war between a country having difficulty adjusting to austerity and creditors trying to hold on to some level of value on their Greek debt. This deal in particular was struck with a group of creditors being pulled into the deal kicking and screaming. Greece is attempting to bring creditors joining the deal from about 86% to more than 95%, but will have to do so through use of "collective action clauses."

Across the pond, America's job market proved resilient for another month. Not only did the economy slightly beat consensus estimates of a job gain of 210,000, but job growth for the previous two months was raised by 61,000. The data show that the United States economy is continuing to recover and may not need further stimulus.

So there you have it. While there was further progress made in Greece, investors tired of the constant chatter of "avoiding a debt spiral" were uninspired by an action that still required collective action clauses. Instead, America's good -- not great -- job numbers showed a high level of resiliency for the world's largest economy. With many large FTSE companies having a large presence in America, this was the news investors chose to focus on today.

Eric Bleeker owns shares of no company listed above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (7)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On March 11, 2012, at 9:47 AM, TMFCop wrote:

    Still not sure how reducing Greece's debt by $100 billion, but piling on $130 billion more from a ECB loan is considered "progress."

    What they've done is just kick the can a little further down the road. Now it's a wait-and-see game on whether they'll implement all the requirements of the bailout.

    If the Greek elections go against those who secured the loans, you can be sure we'll be right back he again in a few months.


Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1806781, ~/Articles/ArticleHandler.aspx, 10/21/2016 10:34:47 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 hour ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 11:35 AM
^FTSE $7020.47 Down -6.43 -0.09%
FTSE 100 CAPS Rating: No stars