News that Greece will scrap a referendum on unpopular budget cuts and an unexpected interest rate cut in Europe sent the Dow Jones industrial average up nearly 210 points Thursday, the second day in a row of big gains.
The Greek government teetered and stock markets around the world plummeted Tuesday after a hard-won European plan to save the Greek economy suddenly was thrown into doubt by the prospect of a public vote.
In a rare global summit where the U.S. leader is not the center of attention, President Obama leaves Wednesday evening for the Group of 20 summit in Cannes, France, with a diminished international presence and an economic-growth message being drowned out by the scramble to deal with Europe's unresolved debt crisis.
Europe's days-old plan to solve its crippling debt crisis and restore faith in the global economy has been thrown into chaos by the Greek prime minister's stunning decision to call a referendum on the country's latest rescue package.
Is China now emerging as banker to the rest of the world? The United States owes China $1.3 trillion - out of a total U.S. public debt load of $14.1 trillion. The U.S. also owes almost $1 trillion to Japan.
The new European rescue deal is being put in place. While details are still being hammered out, it will effectively allow Greece to default on its debt - despite protestations to the contrary.
Markets worldwide - from Wall Street to Europe to Asia - celebrated a breakthrough deal on Greece's debt Thursday with big gains, the Dow Jones industrial average closing above 12,000 for the first time in nearly three months.
Stocks soared Thursday morning after European leaders agreed on a deal to slash Greece's debt load and prevent the debt crisis there from engulfing larger countries such as Italy. Stronger U.S. economic growth and corporate earnings also drove markets higher.
German finance chief Wolfgang Schaeuble dampened expectations of an upcoming EU summit, saying Monday that it would not provide a comprehensive solution to the eurozone debt crisis that threatens to cause another global recession.