The critical vote in the Greek parliament on a new austerity deal turned out to be a major boost to global stock markets but failed to ignite much excitement inside the European Union (EU).
The Wall Street rebounded from Friday’s loss and rose broadly higher, with the Dow Jones industrial average gaining 0.57 percent, the Standard & Poor’s 500 advancing 0.68 percent, and the Nasdaq Composite Index up 0.95 percent.
The atmosphere in Asian bourses was also buoyant. Hong Kong shares closed 0.5 percent higher Monday following the passage of a Greek austerity bill, while in Japan, the benchmark Nikkei Stock Average ended up 52.01 points, or 0.58 percent.
However, as investors showed their share of confidence in the easing of the Greek debt crisis, leaders of EU member countries appeared more cautious, with only a few making comments on the so-called “key step” that cleared the way for the release of a second 130-billion-euro (171-billion-U.S.-dollar) bailout loan.
EU Economic and Monetary Affairs Commissioner Olli Rehn welcomed the Greek move, saying “the vote is a crucial step” toward the adoption of the second bailout program. He added that “it will still take time and effort by the Greek society” to avoid a disorderly default.
The Greek parliament voted early Monday after a long debate in favor of a new austerity package which includes lowering the minimum wage by 22 percent and axing 150,000 public sector jobs.