US open: Stocks rise amid positive news from Greece, while oil jumps again

US stocks rose on Tuesday buoyed by strong gains in Europe, on the back of encouraging news from Greece.

Just before 10:00 in New York, the Dow Jones Industrial Average was up 173.33 points, while the S&P 500 and the Nasdaq rose 0/74% and 0.55% respectively.

Speaking in London on Monday, Yanis Varoufakis, Greece’s new finance minister, said the country aimed to swap outstanding debt for growth-related bonds, while running a budget surplus and clamping down on wealthy tax evaders.

“The outlook remains rocky,” said Berenberg analyst Holger Schmieding

“Time is not on Greece’s side. Capital flight, a drain in deposits and the plunge in economic sentiment and the manufacturing purchasing managers’ index all suggest that Greece is at risk of falling into a renewed recession if it cannot end the uncertainty about the Greek outlook and the standoff with its creditors fast.

Stocks in Australia reached a seven-year high after the Reserve Bank of Australia surprised markets by cutting rates to a record low.

“With yet another central bank cutting rates, the case for additional upside in equities remains intact,” said Brenda Kelly, chief market strategist at IG.

“Add to this the bounce in oil prices and we have some additional enthusiasm for risk assets.”

In corporate news, AutoNation, gained almost 9% after sales rose over 10%, while Staples and Office Depot both surged 11% and 19% respectively, after sources cited by the Wall Street Journal suggested the two companies have opened negotiations ahead of a merger.

Lending Club rose almost 5% after announcing a deal with Alibaba Group Holding to provide sales financing to small businesses buying from Chinese suppliers.

RadioShack plunged after the New York Stock Exchange said it would move to delist the stock, and a Wall Street Journal report said the company would file for Chapter 11 protection in the near future.

Meanwhile, a report at 15:00 GMT is expected to show US factory orders fell 2.4% in December after a 0.7% drop a month earlier.

After a strong rebound on Monday, oil prices rose again on Tuesday with Brent crude rising over 2% to $55.87 a barrel, while West Texas Intermediate crude gained just under 2% to $50.58 a barrel.

“If oil prices don’t spend too long sub-$50 per barrel in the first quarter and the oil majors were able to weather the storm in the fourth quarter, it raises hopes that the worst for blue chip oil companies could be behind them,” said CMC Markets analyst Jasper Lawler.

Gold futures fell 0.86% to $1,265.90, while the dollar lost almost 0.5% and 0.8% against the pound and the euro respectively, but gained slightly against the yen.