On 13 July, 2015 – Global markets rallied on news of an agreement with Greece

In the US, all sectors trading on the Standard & Poor’s 500-stock index rose except utilities; Chinese stocks rose as regulators announced further measures to restore investor confidence.
United States
A new agreement between Greece and its creditors helped push US stocks up Monday. The deal for a new loan package is aimed at keeping the country in the euro but many hurdles remain. Gains in the stock market were broad. Nearly three stocks rose for every one that declined on the New York Stock Exchange. Every sector in the Standard & Poor’s 500-stock index made gains except utilities. The Dow Jones industrials were up 1.2%, the S&P added 1.1% and the Nasdaq advanced 1.5%.
European leaders reached a tentative agreement on new loans for Greece, removing the immediate threat that the country would default on its debts. Nine hours after a self-imposed deadline passed, European officials announced the breakthrough early Monday. In exchange for a three-year loan program, the deal requires Greece’s parliament to approve tax increases and other policy changes demanded by lenders by Wednesday.
Microsoft gained after it said it would roll out Windows 10 in late July. The upgraded operating system is supposed to allow users to switch seamlessly between personal computers and their gadgets. Comcast advanced after it announced plans to launch a streaming video service later this summer. For a monthly fee, the new service called Stream, will allow customers to watch live TV from about a dozen networks. Also advancing were Facebook, Netflix and Amazon. Apple’s increase gave the biggest boost to the Nasdaq. A slide in oil prices boosted US airline stocks including American Airlines, United Continental, JetBlue and Alaska Air. Markwest Energy Partners jumped after Marathon Petroleum’s master limited partnership said it will buy the natural gas processor for about US$15.63 billion.
Greece won conditional agreement to receive a possible US$95 billion over three years, along with an assurance of talks to bridge a funding gap until a bailout is finally ready. The deal is contingent on Greece meeting a tight timetable to enact reforms on value added taxes, pensions and budget cuts. Also making US markets more confident, Chinese stocks gained for a third straight day.
Gold at the afternoon London fixing was down US$5.30 to US$1,154.00. Copper futures were up 0.2% to US$2.54. WTI spot crude was down 55 US cents to US$52.19. Dated Brent spot crude was down 74 US cents to US$57.99. The US dollar was up against all of its major counterparts including the euro, yen, pound, Swiss franc and the Canadian and Australian dollars. The Dollar Index was up 1.1%. The yield on US Treasury 30 year bond was up 2 basis points to 3.21% while the yield on the 10 year note was up 3 basis points to 2.43%.
Europe
Shares advanced after Eurozone leaders unanimously reached an agreement early Monday to start talks for a third bailout program for Greece. After 17 hours of marathon negotiations an agreement was reached which paves the way for a third rescue package for Greece. The package is worth between €82 and €86 billion. Eurozone ministers have given Greece until Wednesday to pass new laws, including tax and pension reforms. The FTSE was up 1.0%, the CAC gained 1.9%, the DAX advanced 1.5% and the SMI added 1.3%.
Banks including Deutsche Bank, Commerzbank, Crédit Agricole, Société Générale and BNP Paribas advanced. Deutsche Börse and Lanxess gained. Sanofi gained on a broker upgrade. Vivendi and Airbus also were higher. Alent surged after the specialty chemicals company Platform Specialty Products offered to acquire the chemicals producer in a cash and stock deal for about US$2.1 billion. International Consolidated Air Group increased as did Carnival. Both Wm Morrison Supermarkets and Kingfisher were up. On the downside, International Personal Finance sank on proposed revisions to a credit amendment law in Poland, one of its biggest markets.
Asia Pacific
Most stocks advanced Monday. Stocks rebounded in China for a third day and investors clung to hopes that an 11th-hour deal would be struck between Greece and its international creditors. There was a late afternoon surge after Eurozone leaders agreed unanimously on a new bailout for Greece that includes “serious reforms” and “financial support.”
The Shanghai Composite gained 2.4% as regulators announced further support measures such as cracking down on “grey-market” margin lending to restore investor confidence. The index has gained 13.2% during the past three trading sessions. The Hang Seng added 1.3%. China’s June exports were up 2.1% from a year earlier in yuan terms, reversing a 2.8% decline in May. Imports slumped 6.7% on the year, reinforcing expectations that policymakers will further loosen policy to support growth.
The Nikkei added 1.6% after experiencing its sharpest weekly decline since mid-October last week. NTT Data, NTT DOCOMO, Kansai Electric Power, Yamaha and West Japan Railway advanced.
Both the S&P/ASX and All Ordinaries retreated 0.3%. Energy stocks bore the brunt of the selling, tracking further declines in oil prices as Iran and six world powers said they were closer to a landmark nuclear deal that could increase crude exports in an oversupplied market. Woodside Petroleum, Santos and Oil Search dropped. The big four banks closed down after a study by the country’s banking regulator showed banks need to increase their capital ratios by about one sixth in order to make them “unquestionably strong.” Miners also slumped. The Kospi rallied 1.5% while the Sensex added 1.1%.
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*
Germany releases preliminary June consumer price index. India posts June WPI. The ECB posts its second quarter lending survey. The UK reports June consumer and producer price indices. The Eurozone releases May industrial production. In the US, the NFIB small business optimism index for June will be posted along with June retail sales and import & export prices and May business inventories. JPMorgan Chase, Johnson & Johnson and Wells Fargo announce their second quarter results early Tuesday (US).
*Note — all releases are listed in local time.