So yes the market is rallying on only a headline and not a full story. Headline being “Greece agrees with IMF, EU on 5 yr austerity plan.” There is already an austerity plan that the Greek parliament is voting on next week so the only thing that could be different is if the terms have been changed to make it easier for the Greek government to pass. Again, its just a headline that doesn’t fully make sense since a plan is already being voted on next week.
Well, it turns out the market rallied on a story that came out this morning. The supposed deal that reuters reported at around 3pm and caused the market spurt higher was actually out before lunch with the gist being the Greek government will lower the income threshold of those being taxed, amongst other spending cuts. For those who have Bloomberg, it hit the tape at around 10:50am.