On 09 July, 2015 – Most global markets rose on optimism for a Greek debt deal

Most stock indices advanced Thursday. Chinese shares rebounded after a flurry of moves by authorities and investors perceived a lessening of tensions surrounding Greece.
United States
Stocks gained Thursday, bouncing back from big losses a day earlier, as investors speculated that last-ditch talks between Greece and its creditors will produce an agreement. Measures taken by the Chinese government to stem the rout in that nation’s stock market also appeared to be working. Stocks once again slipped off highs in afternoon trading as investors face overnight risks. The Dow Jones industrials rose 0.2 percent to 17,548.
Greek government submitted its reforms and austerity measures to creditors as scheduled on Thursday. The country is trying to secure a new bailout deal at a meeting of the European Union’s 28 leaders on Sunday. Its government extended capital controls through Monday, July 13.
Walgreens Boots Alliance, the owner of Walgreens and Duane Reade drugstores, surged after reporting fiscal third-quarter earnings that exceeded analysts’ expectations. The company also raised its outlook for the year. Citigroup Inc. and Bank of America increased as banks recovered from Wednesday’s drop. Apple slid while semiconductors retreated for a fourth day. Freeport-McMoRan was up after retreating for a seven session stretch in which the miner lost 17%. Alcoa climbed following its second quarter report. JB Hunt Transportation Services gained on a broker upgrade. American Airlines Group and JetBlue Airways advanced. Chesapeake Energy and Diamond Offshore Drilling gained after oil rallied from five sessions of declines. Altera and Intel retreated after a report that said its analysis suggests “substantial” antitrust risk for the chip companies’ merger. Avago Technologies and Texas Instruments also declined. Coty retreated after agreeing to buy 43 of Procter & Gamble’s beauty brands for about US$12.5 billion in a deal that would more than double its sales and transform it into one of the world’s largest cosmetics companies.
The International Monetary Fund today cut its forecast for global growth this year, citing a weaker first quarter in the US. It also expressed confidence that financial-market turbulence from China to Greece won’t cause widespread damage.
Gold at the afternoon London fixing was up US$5.75 to US$1,164.25. Copper futures were up 2.0% to US$2.55. WTI spot crude was up US$1.20 to US$52.85. Dated Brent spot crude was up US$1.59 to US$58.64. The US dollar was down against the pound and the Canadian and Australian dollars. However, it advanced against the yen, euro and the Swiss franc. The Dollar Index was up 0.4%. The yield on US Treasury 30 year bond was up 11 basis points to 3.10% while the yield on the 10 year note added 9 basis points to 2.30%.
Europe
Stocks rallied for a second day. The increase was fueled by continued optimism for a Greek deal with its international creditors. A strong rebound in the Chinese stock market also eased global economic concerns. The FTSE was up 1.4%, the SMI gained 1.5%, the CAC advanced 2.5% and the DAX was 2.3% higher.
Markets in Europe steadied after recent declines as Greece requested a new three year bailout on Wednesday and pledged to start implementing some overhauls, adding to investor hopes that a deal can be reached at Sunday’s crisis summit. Still, an agreement depends on Prime Minister Alexis Tsipras making a drastic turnaround on pension cuts, tax increases and other austerity measures after five months of often acrimonious negotiations.
Automakers Volkswagen, Daimler, BMW, Peugeot and Renault advanced. Fresenius Medical Care and Fresenius along with Bayer and Merck gained. Banks including Commerzbank, Deutsche Bank, Crédit Agricole, Société Générale and BNP Paribas closed higher on the day. Barratt Developments said it traded well throughout the financial year and expects increased pre-tax profit, supported by higher selling prices and increased completions. Hargreaves Lansdown and Taylor Wimpey also advanced. Associated British Foods jumped as the Primark owner reported increased revenue for the 40 weeks ended June 20 and backed its full-year earnings forecast. Mining stocks turned in a solid performance after the rebound in China’s stock market. Anglo American, BHP Billiton, Glencore and Rio Tinto gained.
The Bank of England as expected kept its Bank Rate at 0.5% and the asset purchase ceiling at £375 billion. Germany’s exports grew unexpectedly in May, taking the trade surplus to a record high. Exports were up 1.7% from the prior month — the fastest growth since December. At the same time, imports were up 0.4% after a 0.8% drop in April. The trade surplus increased to €22.8 billion from a revised €21.5 billion in April.
Asia Pacific
Markets here were mixed Thursday. However, the Shanghai Composite, thanks to massive efforts from authorities, rebounded 5.8% — its best since early 2009 — after tumbling 5.9% the day before. In a bid to curb crashing prices, China’s securities regulator banned senior management and investors who own stakes in businesses exceeding 5% from selling their shares for next six months. The People’s Bank of China also said it would provide sufficient liquidity to China Securities Finance Corp, the state backed margin finance company. Additionally, the China Banking Regulatory Commission said it would encourage banks to support companies’ share buybacks by offering them collateralized loans. The Hang Seng closed up 3.7% after slumping nearly 6% the previous day.
June consumer prices were up 1.4% on the year while producer prices remained entrenched in deflation for a 40th consecutive month, reflecting continuing slack in the China’s economy. Producer prices contracted 4.8% from a year earlier.
Elsewhere, Asian shares reversed early losses to end on a steady note Thursday, as a rebound in battered Chinese markets offered a sense of relief to investors worried about broader implications for the global economy. Commodity prices stabilized after their recent plunge and Greece and its creditors appeared moving closer to reaching a new bailout agreement by Sunday, helping to underpin investor sentiment after the previous day’s big declines.
The Nikkei, down 3.2% at one point, managed to gain 0.6% for the trading day. Fanuc, Panasonic, Sony and Sharp advanced as the safe haven yen weakened against the US dollar for the first time in six sessions. Uniqlo chain operator Fast Retailing climbed before unveiling its third quarter financial results later in the day. Honda Motor ended marginally lower after announcing it would recall another 4.5 million vehicles globally to replace air bags manufactured by Takata. Toshiba retreated on a Nikkei report the company is considering selling part of its stake in US nuclear power unit Westinghouse Electric and other assets. Japan’s core machinery orders unexpectedly rose 0.6% in May from the previous month, providing fresh evidence of a steady pick-up in capital spending by domestic firms. The headline figure easily beat forecasts for a decline of 0.5% following a 3.8% increase in April.
Australian shares rebounded from early losses after employment figures beat expectations for a second month. Both the S&P/ASX and All Ordinaries were virtually unchanged on the day. Australia’s jobless rate inched up to 6.0% in June from a revised 5.9% in May while employed increased by 7300 to 11.77 million.
The Kospi rallied 0.6% after Chinese policymakers announced new support measures to stabilize the country’s slumping stock market. Meanwhile, in a widely expected decision, the Bank of Korea today held its key interest rate steady at a record low 1.50%, opting to monitor the economic fallout from an outbreak of the MERS virus and the impact of fiscal and monetary stimulus packages on the economy. The Sensex retreated 0.4%, extending losses for the third straight session.
Global Stock Market Recap

Please remember, the value of investments and the income from them can do down as well as up. Funds that invest in overseas markets may be subject to currency fluctuations. Investments in small and emerging markets can be more volatile than other overseas markets. Reference in this document to specific securities should not be construed as a recommendation to buy or sell these securities, but is included for the purposes of illustration only.
Looking forward*
Japan releases May producer prices. India, France and Italy post May industrial production. The UK releases its merchandise trade balance. Canada posts its June labour force survey. The US releases its wholesale trade data for May. Fed Chair Janet Yellen will speak at noon US ET.
*Note — all releases are listed in local time.