Markets rally as Greece and its creditors race to reach deal this week

Tuesday, June 23, 2015

Greece’s main stock exchange rallied 9% yesterday, showing its biggest increase since February, and outperformed the rest of European equities. Furthermore, yields on Greek government bonds declined amid hopes that the Greek government will reach a deal with its creditors this week in order to release bailout funds. This morning, European equity markets continued their strong upside momentum as the CAC, DAX, IBEX and the Italian benchmark indices posted strong gains and rose between 0.8% and 1.1% in early trade. However, the euro came under renewed pressure this morning and slid lower towards 1.1250 against the USD. The next Eurogroup meeting is scheduled tomorrow, Wednesday 24th June, as the Greek government and its creditors are looking to seal an accord.

Athens Stock Exchange

ASE Index (Athens Stock Exchange 2015-06-23 08-48-56

EURUSD

EUR Curncy (Euro Spot )  Daily 25 2015-06-23 08-48-27

The Asian equity markets continued their strong uptrend. The Nikkei index surged almost 400 points (+1.87%) above 20,800. The Hang Seng index climbed 1.2% higher towards 27,260 following the recent solid Chinese economic data. HSBC’s Manufacturing PMI was reported at 49.6 in June beating analysts’ expectations of 49.4. Furthermore, China’s Beige Book survey showed a broad-based recovery of Chinese economy for Q2 2015 based on a rebound in the property and retail sectors. The survey which is published by NY-based CBB International reported Chinese companies are doing better than the official data shows while deflation risks may have been alleviated.    

In the US, the Dow Jones jumped over 100 points (+0.6%) towards 18,120 and the NASDAQ hit a new record high at 5162 to end the session at 5153.92. The USD index edged higher and climbed towards 95.0 against a basket of currencies this morning. Today, market participants will be keeping an eye on the release of the US durable goods and new orders data in May as well as FHFA house price index and Markit Manufacturing PMI.

NASDAQ

CCMP Index (NASDAQ Composite Ind 2015-06-23 08-51-10

Gold hovered around $1180 this morning following a sharp selloff yesterday. Silver extended losses and fell by 0.7% in early trade towards $16. Platinum and palladium remained in positive territory and extended gains within the recent range. Base metal prices climbed higher this morning with copper rallying strongly towards $5750. Crude oil prices were mixed this morning ahead of the release of the weekly API oil inventories report.

Events for today: 

0245

CN

Jun

HSBC Manufacturing PMI

0830

DE

Jun

Markit Composite PMI

0900

EZ

Jun

Markit Composite PMI

1330

US

May

Durable Gds & New Orders

1400

US

Apr

FHFA House Price Index

1445

US

Jun

Markit Manufacturing PMI

1500

US

May

New Home Sales

1500

US

Jun

Richmond Fed

 

All times UK Local Time

 

 

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