On 16 July, 2015 – Global markets rose as the Greek parliament approved the agreement with its creditors

Investors were heartened by news that eurozone finance ministers reportedly agreed to provide a €7 billion bridge loan to Greece.
United States
Stocks ended stronger Thursday with the Nasdaq climbing to a record high after several big companies reported earnings gains and Greece got help for its banks. The Dow Jones industrials were up 0.4%, the S&P gained 0.8% and the Nasdaq jumped 1.3%.
Federal Reserve Chair Janet Yellen gave an optimistic assessment for the world’s biggest economy in today’s testimony to the Senate Banking Committee in the second part of her semi-annual testimony to Congress. She said the economy was reviving after a harsh winter and said the Fed could start raising interest rates before the end of the year if improvements stay on track. However, she also said rates would remain at very low levels “for quite some time after the first increase.”
Intel gained after the chip maker said profit and revenue fell but projected better than expected revenue and margins in the third quarter. Netflix jumped after the online video streaming company posted better than expected earnings and said it added more subscribers than expected in the second quarter. Shares of eBay advanced after it said revenue grew 7% in the June quarter. The company also agreed to sell its Enterprise unit to a consortium. Goldman Sachs declined after it said its second-quarter profit fell sharply as the investment bank booked litigation provisions and managed through increasingly volatile markets. The bank reported a profit of US$1.05 billion, or US$1.98 a share. Litigation provisions reduced earnings by US$2.77 a share. Revenue fell to US$9.07 billion.
Citigroup said its quarterly profit jumped as it slashed its spending on litigation. It reported a profit of US$4.85 billion or US$1.51 a share. That compares with the US$181 million or 3 US cents a share it reported in the same period of 2014. Revenue was essentially flat at US$19.47 billion but fell 1.5% on an adjusted basis to US$19.16 billion. Google said profits advanced 15 percent to US$3.9 billion in its latest quarter as advertising sales climbed. Revenues, excluding the cost to acquire traffic, rose 13 percent from a year earlier to US$14.35 billion, lifted by the company’s core search business. Google said it earned US$4.93 per share.
Gold at the afternoon London fixing was down US$3.00 to US$1,144.40. Copper futures were unchanged at US$2.52. WTI spot crude was down 45 US cents to US$50.96. Dated Brent spot crude was up 46 US cents to US$57.51. The US dollar was up against the euro, yen, pound, Swiss franc and the Canadian dollar. However, it declined against the Australian dollar. The Dollar Index was up 0.7%. The yield on US Treasury 30 year bond was down 3 basis points to 3.11% while the yield on the 10 year note slipped 1 basis point to 2.34%.
Europe
Stock indices were up for a seventh consecutive day as investors were heartened by the recent developments in Greece. The Greek parliament approved stringent austerity measures proposed by creditors to secure a €86 billion third bailout for the country late Wednesday. Eurozone finance ministers reportedly agreed in principle to provide a €7 billion bridge loan to Greece.
The European Central Bank raised the emergency funding it extends to Greek banks on Thursday after Eurozone finance ministers agreed to provide a short-term loan to Greece following the overwhelming approval for tough austerity measures in the national parliament to secure a third bailout. The Governing Council, which held its policy session in Frankfurt, decided to raise the emergency liquidity assistance ceiling by €900 million for a week after a request by the Bank of Greece. The latest ECB move may allow Greek banks to reopen and function to a limited extent. The country has had a bank holiday and capital controls since late June. Draghi said it was not possible to say when the capital controls can be lifted and stressed that it was crucial to avoid a bank run.
BMW increased along with Daimler and Volkswagen. Banks including Commerzbank, Deutsche Bank, BNP Paribas, Société Générale and Crédit Agricole advanced. RWE and E.ON gained. In Paris, Carrefour advanced after reporting growth in quarterly sales. Rio Tinto lowered its forecast for full-year iron ore shipments, citing a weather disruption in the first half of the year at its Pilbara operations. Anglo American gained after announcing hefty impairments. Dixons Carphone increased after its better than expected earnings report.
Asia Pacific
Stocks advanced Thursday after the Greek parliament passed a raft of tough austerity measures, including tax increases and an increase in the retirement age, to secure a three year European bailout.
The Nikkei added 0.7% to a near three-week high as the yen weakened following Wednesday’s comments from Federal Reserve Chair Janet Yellen. In testimony before the House Financial Services Committee, Yellen reiterated that the Fed is on track to raise short term interest rates later this year if the economy evolves as expected. J Front Retailing, Kansai Electric Power, Nippon Telegraph and Telephone and Mitsubishi Chemical Holdings gained. Fast Retailing, Mitsubishi UFJ Financial Group and Toyota Motor climbed. Inpex declined after US crude oil futures settled at a more than three month low Wednesday on renewed concerns of a supply glut.
Australian shares extended gains for a third straight session with banks leading the way after the Greek parliament approved harsh austerity measures demanded by creditors. The S&P/ASX added 0.6% and the All Ordinaries added 0.5%. Rio Tinto advanced despite cutting its full-year iron ore shipments target due to bad weather that hit its Pilbara operations. BHP Billiton also advanced while Fortescue Metals Group dropped. Whitehaven Coal slumped despite reporting record quarterly and full-year coal production. Gold miner Newcrest Mining retreated as gold prices hovered near a four-month low.
The Shanghai Composite rebounded after two days of losses as more companies resumed trading and the government cracked down on margin lending activities through unofficial channels. The Shanghai Composite swung between gains and losses before closing up 0.5%. The Hang Seng added 0.4%. The Kospi added 0.7% with easing uncertainties over Greece, Iran and China underpinning investor sentiment. The Sensex was 0.9% higher on the Greek actions.
The Asian Development Bank cut its growth forecast for developing Asia for this year and next, citing slower-than-expected growth in the United States and China. While retaining its India GDP growth projection for 2015-16 at 7.8%, the ADB said any delays in reforms relating to land acquisition and GST could hamper growth.
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*
June consumer prices and housing starts along with preliminary July consumer sentiment will be reported. Canada also reports June consumer prices.
*Note — all releases are listed in local time.