Monday, July 13, 2015

Economic Journal - Monday, 7/13/2015


(As of 7:10 am PST)

US stocks are extending their rally from Friday after a deal was reached in Greece early Monday morning. After a 17 hour summit in Brussels over the weekend, euro-zone leaders appear to have reached a bailout agreement valued at 86 billion euros ($96 million USD) which would avoid a Greek exit from the euro-zone. The reform package includes austerity measures that must be approved by the national parliament in Greece before formal funding can begin, which many suggest could happen by the end of this week. European equities rallied Monday on the news with indexes higher by more than 1%. In Asia, stocks continued their winning streak with Chinese stocks up 2% despite many shares of Chinese companies remaining halted for trading on the heels of the recent sharp selloff in China. In the US, economic data is light today but will pick up as the week wears on with reports on retail sales, manufacturing, housing, and consumer sentiment all due out. Investors also have plenty of earnings announcements to sift through this week as Q2 earnings season kicks into full swing. Commodity prices are lower today with oil down 1.5% and gold also down to $1,150/oz. With the risk trade on today, treasury prices are lower sending rates up with the 10 yr. yield at 2.44%.

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