Global shares higher as fears over Greece euro exit ease

Global shares were higher today after Greek polls showed growing support for a pro-bailout party ahead of the country’s election next month, easing fears of a potentially destabilizing Greek exit from the euro zone.

But gains were capped as Spanish bond yields hit multi-month highs after Bankia, the country’s fourth-largest bank, sought a 19 billion euro ($23.9 billion) government injection, the Financial Times reported.

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According to Reuters, European stocks rose for the third straight session after five Greek polls published at the weekend showed growing support for the conservative New Democracy Party, which backs the bailout.

It has a narrow lead over the anti-austerity leftist Syriza party in the run up to the June 17 election, the country’s second in as many months.

The polls boosted hopes Greece will remain in the euro, sending shares in Europe and Asia higher. US markets were closed for the Memorial Day public holiday. 

The Eurofirst 300 closed up 0.03 percent at 985.24. In Hong Kong, shares finished 0.47 percent higher at 18,800.99 and Tokyo stocks edged up 0.15 percent at 8593.15, the New York Times reported.

The effective nationalization of Bankia put pressure on Spanish sovereign bonds as investors fretted that the government might need to prop up the rest of the fragile sector.

Spanish 10-year bond yields rose 0.18 percentage point to 6.47 percent, its highest in 2012, before easing back to 6.43 percent, the Wall Street Journal reported, citing data from Tradeweb.