A pledge from EU leaders to provide “coordinated action if needed” to support Greece through its debt crisis gave global markets a lift on Thursday. The commitment from European Council President Herman Van Rompuy eased concerns that Greece’s woes could spread to the highly-leveraged economies of Spain and Portugal, and fears of a far-reaching “contagion effect” subsided considerably. Elsewhere, protests erupted in Iran while former president Clinton was hospitalized with chest pains.
The ETFdb 60 Index, a benchmark measuring the performance of asset classes available through ETFs, climbed 9.28 points, or 0.9%, to close at 1,004.71. The index closed above the 1,000 level for the first time this week.
Leading the way higher on Thursday was the iPath Copper ETN (JJC), which jumped 4.6% on news of a surge in lending in China, the world’s biggest consumer of industrial metals. A gloomy outlook on the European economy had been weighing on copper prices in recent weeks, as inventories continued to rise.
Also surging on Thursday was the Market Vectors Gold Miners ETF (GDX), which added 3.9% on the day. The outlook for the mining industry brightened after Rio Tinto reported a profit and announced a dividend. Gold prices also drove GDX higher, as bullion prices rose nearly 2% despite increased appetite for risk and continued strength from the dollar.
Disclosure: No positions at time of writing.