US markets

Blue-chip stocks posted their biggest gain in more than two months, as signs of progress in Greece's debt crisis sparked a broad market rally. The Dow Jones Industrial Average rose 145.13 points, or 1.21%, to 12188.69, for the measure's biggest one-day gain since April 20. Caterpillar led the blue chips, rising $3.04, or 3%, to 103.84. McDonald's rose 2.03, or 2.5%, to 84.35, and Home Depot added 86 cents, or 2.4%, to 36.06. The Standard & Poor's 500-stock index gained 16.57 points, or 1.3%, to 1296.67, with battered energy stocks leading advancers. All S&P 500 sectors finished with a gain. The technology-oriented Nasdaq Composite jumped 41.03 points, or 1.53%, to 2729.31, its third gain in four sessions. Investors were heartened after German banks agreed in principle to roll over about $10 billion in Greek government debt, fueling hopes that Greek-debt worries could soon be put aside. Greek lawmakers are set to cast a key austerity vote Wednesday.

[Sign up to get reports daily in your inbox]

A mixed batch of U.S. economic data showed that U.S. home prices rose in April from a month earlier, the first increase in eight months. But a June consumer-confidence reading was slightly lower than May's, disappointing expectations. Nike jumped 8.28, or 10%, to 89.90, as the footwear and apparel company's fiscal fourth-quarter results beat expectations. LinkedIn jumped 9.18, or 12%, to 85.56. The social-networking company picked up a batch of Wall Street buy and outperform ratings Tuesday as analysts kicked off coverage of the shares with the end of a quiet period following last month's initial public offering.

European markets

European stocks rose Tuesday, buoyed by increased optimism that a solution will be found to Greece's debt problems. The pan-European Stoxx 600 index rose 0.5% to close at 265.23, and Athens's ASE index jumped 2.7% to 1258.84. Among major European benchmarks, the U.K.'s FTSE 100 rose 0.8% to 5766.88, Germany's DAX gained 0.9% to 7170.43 and France's CAC-40 climbed 1.5% to 3851.89. Greek workers began a two-day strike to protest the austerity measures, while the European Union stepped up the pressure on Greek lawmakers to pass budget cuts and asset sales or face default. Greece's parliament must approve austerity measures, so that the nation can receive more aid. A vote on the package is scheduled for Wednesday and a vote on the implementation legislation for Thursday. Bank stocks rose after a meeting of Greece's creditors Monday that included discussions of how to get meaningful contributions from the country's private-sector lenders, as demanded by Germany and other euro-zone governments. Germany's Commerzbank jumped 4.6%, and Credit Agricole gained 3.6% in Paris. Among other financial stocks, Royal Bank of Scotland climbed 4.2% and Societe Generale rose 3%. Shares of industrial conglomerate Siemens fell 1.9%. The company said it expects new orders and revenue to increase in the fiscal third quarter, with new orders expected to rise significantly year-over-year. Sportswear maker Adidas rose 3.9% after fourth-quarter results from rival Nike topped forecasts. TomTom plunged nearly 27% in Amsterdam after the maker of portable navigation devices cut its expectations for full-year earnings and sales.

Asian markets

Japanese and Australian stocks led a broad advance in Asian markets Tuesday on optimism that Greece will be able to avert a disorderly default on its national debt, with several banking and exporter shares among the gainers. Greece's debt troubles remain in focus amid uncertainty about this week's Greek parliament vote on austerity measures. Japan's Nikkei Stock Average climbed 0.7% to finish at 9648.98 and Hong Kong's Hang Seng Index inched up 0.1% to 22061.78. China's Shanghai Composite, after rising in the past five sessions, overcame pressure to lock in profits and ended little changed at 2759.20. South Korea's Kospi fell 0.4% and Taiwan's Taiex slipped 0.3%. The region's broad advance came in the wake of overnight gains on Wall Street and after French President Nicolas Sarkozy backed a plan to extend the maturity of Greek bonds due in coming years to share the burden of a new aid package with private investors. Several banking stocks rose, with HSBC Holdings adding 0.4% in Hong Kong, KB Financial Group adding 0.4% in Seoul and United Overseas Bank up 0.2% in Singapore. In Japan, many exporters finished higher, with Canon adding 0.8% and Fanuc rising 2.6%. Panasonic climbed 1.2% after the Nikkei reported that it will cut subsidiary Sanyo Electric's work force by more than 10,000 employees globally this year. In Hong Kong, shares of China Yurun Food Group gave up 5.9%, on top of Monday's 19.8% plunge, amid media reports citing market speculation that research house and short seller Muddy Waters may issue a report on the company.

Base metals

Base metals closed higher on the London Metal Exchange Tuesday as the euro rose and investors became increasingly optimistic Greece will approve austerity measures needed to secure its next tranche of financial aide. A draft proposal by French banks to roll over the majority of their Greek debt exposure helped to ease investor jitters ahead of Wednesday's vote. Reports that German banking associations see France's proposal for private-sector participation in a rescue package for Greece as a potential model for Germany also helped boost sentiment. LME three-month copper closed the open outcry session at $9,071.5 a metric ton, up 1.1% on Monday's PM kerb. Nickel outpaced its peers, though, rising strongly as stockpiles continued to dwindle and the market's technical picture showed signs of stabilizing. It closed up 2.3% at $22,675/ton. A weaker dollar and optimism that Greece's parliament would pass additional austerity measures lifted oil prices from four-month lows Tuesday. Light, sweet crude for August delivery settled up $2.28, or 2.5%, at $92.89 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange settled up $2.79, or 2.6%, at $108.78. Gold futures settled above $1,500 as the market focus remained firmly on Greece's looming budget cut vote. The most actively traded contract, for August delivery, settled up $3.80, or 0.3%, at $1,500.20 a troy ounce on the Comex division of the New York Mercantile Exchange. The thinly traded June-delivery contract settled up $3.70, or 0.3%, at $1,499.70 a troy ounce on its last trading day.

More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Facebook.
Follow us on Twitter.