(As of 7:15 am PST)
US stock futures jumped Friday
and are so far maintaining solid footing with the Dow up nearly 200 points
while the S&P500 and Nasdaq are also higher by 1%. Sentiment towards
Greece’s future changed early Friday after Greek officials submitted a fresh
set of reform proposals late Thursday that appear to entail acceptable terms
for Greece’s creditors. A decision on the proposal is expected to be made
before the weekend, but the market’s perception (especially in Europe) is that
we could be getting close to a deal. Chinese stocks rallied again Friday while
most other Asian indexes ended flat. China’s Shanghai composite index jumped
4.5% Friday, extending its recovery into a second session after starting the week
in a free fall. With half of Chinese listed stocks still suspended for trading,
its too early to tell if this recovery is sustainable in China, as nearly $4
trillion in value of Chinese equities has been wiped out over the past few
weeks. In any case, today’s rally has helped to ease fear around the globe and
a positive trade throughout equity markets has ensued heading into the weekend.
If US benchmarks can sustain today’s rally, they will finish the trading week
roughly where they started. Gold and oil prices are flat today, while interest
rates are higher.
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