Global stocks failed to rally following an all-night meeting among European finance ministers that secured a €130-billion bailout agreement for Greece, ending near-term concerns that the country might slide into default.
U.S. index futures were up only slightly with about two hours before markets open, suggesting that stocks will open relatively flat at the start of trading. Futures for the Dow Jones industrial average rose 42 points or 0.3 per cent. Futures for the broader S&P 500 rose just 1 point or 0.1 per cent.
The reaction in Europe seemed to be even more skeptical. The U.K.'s FTSE 100 fell 0.5 per cent and Germany's DAX index fell 0.8 per cent in afternoon trading.
A large part of the problem is that investors are now looking beyond the immediate threat of a Greek default and toward more longer-term solutions to the European sovereign-debt crisis, and they don't like what they see. The International Monetary Fund said that under a worst-case scenario, Greece's debt level will continue to rise, hitting 160 per cent of its gross domestic product by 2020.
Meanwhile, commodity prices looked set for gains. Crude oil rose to $104.50 (U.S.) a barrel, up 1.2 per cent, in New York. In Europe, Brent crude rose to $121 a barrel, touching an eight-month high. Tensions with Iran are largely behind the gains, with the latest jump in prices coming as Iran is demanding importers sign long-term contracts -- a move that is designed to head-off sanctions.
In earnings news, Home Depot Inc. reported that its fourth quarter earnings beat analysts' estimates, rising 32 per cent, to 50 cents a share. Revenue also topped expectations, gaining 6 per cent. The shares rose 3.6 per cent in premarket activity.
