Market's evolution 20 of July to 24 of July 2015

Market's evolution 20 of July to 24 of July 2015


The background noise was reduced during the week. After making the payment that Greece owed to the ECB and the IMF (worth 4.200 mln. And 2.050 mln. EUR respectively), and the approval by the Greek Parliament of the second package of reforms required by the Troika, the Greek crisis took a secondary place.

Markets had been affected by corporate earnings publications (mainly American companies), which have been affecting markets with high volatility. It’s important to highlight the disappointing data published by the tech giants; Microsoft, which published historical losses of -3.195 mln. USD. And Apple, which did not meet sales expectations by analysts, prompting falls over -4% in the share price.

The macroeconomic data to be released in the Euro Zone show signs of slowing economic growth caused by fluctuations that the Greek crisis produced. Despite this, the expansion remains robust (PMI manufacturing data in the Eurozone current levels are +52,5 vs +52,2 expected). Declines in financial markets up to -3% in the German selective DAX and up to -2% in the Eurostoxx50.

Good macroeconomic results published through the week showed signs of strength in the US economy; the highlighted data included the minimum of the figures in the weekly requests for unemployment benefits. In the same direction, Bullard from the FED, said that the American economy is expected to grow at +3% during the second half of the year and noted that the rise in the interest rates would be carried out before the end of the year.

New signs of weakness in the Chinese economy after the release of manufacturing PMI at current levels of +48.2 which is the 5th consecutive month in contraction. The authorities have expanded the fluctuation band of the Yuan and further cuts are expected in order to retake the path of growth.

In the currency market, the EUR/USD recovers ground despite good US macroeconomic data and news of a rate hike, reaching about 1.098 the pair EUR/USD.

Further falls in the price of the barrel of Brent (-4.34%) which remains in the level of 54,60 USD/Brent after the expectations of an increase in supply. Setbacks in the gold price which has fallen below the 1.100 USD/Onz.