Market's evolution 13 of July to 17 of July 2015
Monday, 20 of July 2015
The week was driven again by the evolution of the Greek crisis. After the poll performed on Wednesday, the Greek Parliament approved the requirements set by the Eurogroup as a condition of the bailout. The finance ministers of the Eurozone also gave a green light to grant the new rescue plan which is not negotiated yet. In addition, Greece will have a bridge loan of EUR 7.000M provided by the MEDE and with an elevation of EUR 900M of the financing plan ELA run by the ECB, as well as a contribution of EUR 50.000M from the ESM for the bailout. Consequently, is expected that the Greek government will be able to obtain the necessary liquidity to reopen the banks and to make the payment of EUR 3.500M due to the ECB as well as the debt due to the IMF to be paid this week. Today banks are expected to be opened although the Athens stock exchange will remain closed.
Draghi’s statements on Thursday 16 suggested as necessary a Greek debt relief and said that capital controls would remain in the country by the moment. Also in line with previous statements made, he confirmed that the QE will continue until September ’16 or until the target inflation will be reached.
This week started the second-quarter earnings season in the US with the publication of the earnings release of J&J and JPM, both beating the results expected. As for monetary policy, Janet Yellen said that if inflation targets are reached, interest rates will be raised.
Following the agreement between Greece and its creditors, the major European indexes closed in green reaching rises of nearly +4% in the Eurostoxx50, and +3,11% in the DAX. Also positive closures in the American stock exchange because of the good earning releases published so far, with advances up to +5% in the case of the Nasdaq 100. In Asia, advances of +4% in the Nikkei225.
Setbacks in oil prices following the agreement reached with Iran on nuclear energy reaching the 57 USD/Brent, similarly, an ounce of gold has undergone a major correction of -2,60% reaching the 1.133 UD/Onz.
In the currency market, the euro has been depreciated against the major currencies of reference. The USD was appreciated against the EUR since Yellen’s words about rises in the interest rates, which made the EUR depreciated against the USD by -3% (1,08EUR/USD from 1,12EUR/USD).