Greek Bailout Deal Agreed ‘In Principle’, European Markets Surge
July 13, 2015 6:06 am
US stocks ended Friday’s session higher after traders took positions in the hope that a deal would be reached between Athens and its creditors to avoid bankruptcy and keep the debt-ridden country in the Euro. The Dow climbed 211 points to close at 17,760, while the S&P500 rose 25 points to close at 2,076. Asian markets also swung higher in Monday’s session due to positive Chinese Trade balance data beating estimates and lifting optimism for an increase in global demand. The Nikkei climbed 1.6% to close at 20,089.
After rigorous overnight talks, it finally seems that Greece and Euro Zone leaders have reached a deal to move forward with a bailout loan for Greece. It appears that at least €25billion will be used to recapitalise Greek banks and – for the moment, at least - there will be no Grexit. The Greek Parliament is also expected to pass key reforms this week, which were demanded by Eurozone leaders in return for new bailout funds. European markets are reacting positively to the news; the DAX is up by 1.25%, the CAC is up by 1.5%, and over in the UK the FTSE is up by 0.65%. The Euro jumped to $1.11932 before settling back to $1.11606; the Common Currency also recovered some of its recent losses against the Yen, peaking at a level of 137.72 before dropping to 137.11.
In commodity markets, gold failed to get much of a safety bid, easing over a dollar to $1,160.80 an ounce, Brent crude sank $1.24 to $57.49 a barrel and U.S. crude shed 91 cents to $51.83.
Within the equity space Royal Bank of Scotland is winding down its Greek operation and is putting its $5bn shipping loans portfolio up for sale as the group scales back non-core activities, finance sources familiar with the plans said on Friday. The stock is up 1.3% in early trade at 350p per share.
US stocks ended Friday’s session higher after traders took positions in the hope that a deal would be reached between Athens and its creditors to avoid bankruptcy and keep the debt-ridden country in the Euro. The Dow climbed 211 points to close at 17,760, while the S&P500 rose 25 points to close at 2,076. Asian markets also swung higher in Monday’s session due to positive Chinese Trade balance data beating estimates and lifting optimism for an increase in global demand. The Nikkei climbed 1.6% to close at 20,089.
After rigorous overnight talks, it finally seems that Greece and Euro Zone leaders have reached a deal to move forward with a bailout loan for Greece. It appears that at least €25billion will be used to recapitalise Greek banks and – for the moment, at least - there will be no Grexit. The Greek Parliament is also expected to pass key reforms this week, which were demanded by Eurozone leaders in return for new bailout funds. European markets are reacting positively to the news; the DAX is up by 1.25%, the CAC is up by 1.5%, and over in the UK the FTSE is up by 0.65%. The Euro jumped to $1.11932 before settling back to $1.11606; the Common Currency also recovered some of its recent losses against the Yen, peaking at a level of 137.72 before dropping to 137.11.
In commodity markets, gold failed to get much of a safety bid, easing over a dollar to $1,160.80 an ounce, Brent crude sank $1.24 to $57.49 a barrel and U.S. crude shed 91 cents to $51.83.
Within the equity space Royal Bank of Scotland is winding down its Greek operation and is putting its $5bn shipping loans portfolio up for sale as the group scales back non-core activities, finance sources familiar with the plans said on Friday. The stock is up 1.3% in early trade at 350p per share.
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