(Greece) – European markets breath a sigh of relief with the news that the Eurogroup has approved Greece’s third round of bailout funds. Stocks all over Europe surged after news that the Eurogroup approved the newest round of bailout funds. The markets started strong early on Wednesday morning and continued to surge at the close of business. This is the best the markets have performed in over a month. Oil prices also experienced gains yesterday. Greece is now scheduled to receive 10.3 Billion Euro in new bailout money, which appears to have put investors into a positive mindset. The bailout money is designed to help Greece manage its debt.
Most of the markets achieved gains by the time they close, and they all started strong. The Stoxx Europe 600 was up 1.3% and finished at 348.56, which is its best score since April 28, 2016. The Pan-European Index also gained and closed the day up by 2.2%. Energy shares rose as the price of oil hovered around $50 per barrel. Repsol rose 3.7%, Italy gained by 3.5%, and other energy companies achieved similar gains. This is a sign that Greece’s bailout arrangement will have a positive impact on the global economy and not just the economy in Greece. As a result of this, the markets opened on a positive note early on Thursday morning, with many stocks staying at a steady pace and others achieving significant gains.
Greece has had a struggling economy since just before the first bailout in 2010, when the global economic slump of 2008 and 2009 impacted the economy. Since then, Greece has had a difficult time managing its debt and there has been some debate as to whether or not the bailouts are the best way to handle the situation. Alex Tsipras’s government has maintained that this is an important step to help propel Greece’s economy into a period of crucial growth. Greece will receive its first round of bailout funds in June and whether or not they receive money after that will depend on whether or not Greece meets a series of requirements.