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Stocks pushed higher for a third consecutive day on Wednesday after Greece passed its austerity measures, lifting optimism that the indebted country won't default on its creditors.

The Dow Jones industrial average closed at 12,261.42, up 72.73 points or 0.6 per cent. The broader S&P 500 closed at 1307.41, up 10.74 points or 0.8 per cent. In Canada, the S&P/TSX composite index closed at 13,188.94, up 83.96 points or 0.6 per cent.

Visa Inc. jumped 15 per cent and MasterCard Inc. rose 11.3 per cent in late afternoon trading, after the U.S. Federal Reserve proposed to cap debit card transaction fees at just 21 cents (U.S.), considerably less than the banking industry had feared. While the proposal is considerably less than the average 44 cents that banks currently charge a retailer when customers make a purchase, it is a lot higher than the 12-cent cap that the Fed had floated in December.

In other financial moves, Bank of America Corp. rose 3 per cent after it agreed to settle claims associated with mortgage-backed securities, removing a key risk to the bank's balance sheet. Other banks also moved higher, with JPMorgan Chase & Co. rising 2.3 per cent.

In Canada, TMX Group Inc. rose 1.5 per cent after a proposed merger with London Stock Exchange Group PLC fell apart due to a perceived lack of shareholder support. The deal's collapse could lead to a deal with Maple Group Acquisition Corp., a consortium of 13 financial firms that had offered $50 a share for the operator of the Toronto Stock Exchange.

Crude oil rose to $94.77 a barrel, up $1.88, which gave a lift to energy producers. Suncor Energy Inc. rose 0.2 per cent, Canadian Natural Resources Ltd. rose 1.4 per cent and Chevron Corp. rose 0.9 per cent.

Gold producers were also strong after the price of gold rose to $1,510.90 an ounce, up $10.20. Barrick Gold Corp. rose 1.5 per cent.



What's up: June 30

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