GLOBAL MARKETS-Optimism over Greek deal boosts stocks, euro

EU welcomes Greek reform offer to avert default. * European stocks jump, peripheral yields fall. * Gold drops as dollar rises on Greek deal hopes ...

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Families face holiday CHAOS: Greece euro crisis could wreck travel plans this week

Whitehall officials and tour operators are ready to bring home up to 110,000 tourists if the cash-strapped country crashes out of the euro. It would be the largest peacetime evacuation of Britons. Already Ministers and travel agents are warning travellers ...

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Greece's Bargaining Position: Tsipras Has A Strong Hand

Eurozone finance ministers will look at Greece’s latest proposals in more detail this week, illustrating that Greece has a strong hand at the bargaining table. This strength is surprising given their weak economy. The ace in Tsipras’s hole is his nation’s “primary budget surplus.” That means that the government’s revenues [...]

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Eurozone finance chiefs look for Greek deal later this week

With leaders from the 19 single currency nations gathering in Brussels, financial officials gave a tentative endorsement to new Greek proposals for ...

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European markets went through the roof today after positive hints about Greece's bailout deal

European markets rocketed upwards today on some sudden and positive hints of a Greek bailout deal at today's emergency European summit. The Greek government is trying to negotiate a billions of euros in bailout money, and for the first time in weeks there are genuine signs of positive developments today. Athens stocks led the way — the index recorded a dramatic rise of 9% on Monday: The other major European stock indices surged upwards too: Germany's DAX: +3.85% France's CAC 40: +3.78% Spain's Ibex: +3.84% Italy's FTSE MIB: +3.36% The UK's FTSE 100: +1.72% Here's how the DAX looks: Greek news is almost certain to keep moving markets as the week goes on, and we get more of an idea about the shape of any deal (or if it falls apart).Join the conversation about this story » NOW WATCH: This 1998 supercar could auction for $15 million

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Why a 'Grexit' wouldn't signal the end of the eurozone (USD, EUR, USDEUR)

As euro area finance ministers hold an emergency meeting to address the Greek debt crisis, many questions loom about what a "Grexit" would mean for the weakened nation. But what would the first exit from the monetary union mean for the future of the entire eurozone? Steven Englander, Citi's Global Head of G10 FX Strategy estimates that around 40% of the clients he meets with believe that a Grexit "would irrevocably lead to a breakup of the eurozone down the road." In a note to clients, however, Englander rejected this assertion, explaining that it was based off of the incorrect idea that a monetary union is a fixed exchange regime. "The basic argument is that once it becomes clear that euro zone membership is not a one way street, risk premia will be priced into other countries that are viewed as potential leavers," he wrote of those who think an exit could lead to the end of the eurozone. "For weaker euro members currency risk would be priced into fixed income markets, effectively permanently tightening monetary policy." In this train of thought, countries with the highest risk premium would find it necessary to exit and move their currency to a more sustainable level.  But Englander says this theory excludes an important distinction that would lead to more than just a slow exchange rate mechanism. "This misses the major difference between a monetary union and fixed exchange rates – a central bank in a currency union can intervene credibly to stabilize internal asset markets in a way that central banks with pegs and ERM arrangements could not," Englander wrote. "In the case of the euro, the ECB could extend its QE buying to offset the panic selling by the private sector. It has deeper pockets than the private sector, and if the contagion is unjustified, it will likely profit from fighting off the contagion." Still, Englander believes that a Grexit would be a "lose-lose" for the euro. He wrote: If there is fear of additional exits, investors will price subsequent exits and depreciations into EUR assets, including the EUR. Economic, political and financial pressure will probably add further downward pressure... Right now I don’t see an EUR-positive outcome in the event of Grexit, but it is possible that I am missing something. On Monday, the euro was bouncing around, but ultimately little changed, against the US dollar right near $1.14.  Join the conversation about this story » NOW WATCH: Forget the Apple Watch — here's the new watch everyone on Wall Street wants

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Mulling alternatives to the euro in Greece

Time is running out for Greece to find a solution to its debt crisis. Some analysts believe a parallel currency could be a viable alternative. But what would that entail exactly - and is it realistic?

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