Greece crisis

Oil rose to near $78 a barrel on Wednesday in Asia amid hopes that Europe will contain the debt crisis that has engulfed greece and threatens to destabilize other countries that use the Euro. but sentiment recovered on Tuesday following reports that Europe was talking steps to bolster its banking sector, which is thought to be heavily exposed to Greek debt and could face crushing losses if the country defaults. Wall Street ended higher after a day of wild gains and losses. The Dow gained 1.4 per cent, while the Standard and Poor's 500 rose 2.2 per cent and the Nasdaq composite rose 3 percent. Investor concerns about Greece were heightened when the debt-strapped country said over the weekend it will miss its lower budget deficit targets even after severe cost-cutting. Despite the shortcoming, Europe pledged to loan Greece money to help pay its upcoming bills, but that failed to reassure stock and commodity markets. European markets tumbled on Monday after Greece said it wouldn't be able to reduce its budget deficits as much as it had agreed to as part of a deal to receive more emergency loans.

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