CARLO PIOVANO
AP Business Writer
LONDON – The euro rebounded from a 10-month low on Friday but European stocks dropped, as markets gave a cautious welcome to the eurozone’s bailout program for Greece, which would extend loans only as a last resort and involve the International Monetary Fund.
Investors’ reaction was mixed because while the program does provide a backstop, it rules out any immediate loans to Greece and lays bare the structural problems in Europe’s economic union. Furthermore, while the crisis may be averted, several EU countries face years of slow growth as they try to balance their budgets.
The euro was up at $1.3377 in morning trade in Europe compared with $1.3291 in New York late Thursday.