Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
The European indices started the session negotiating with contained gains. Investors will continue to monitor the development of the new support program for Greece. Today, the Greek Parliament will have to decide on some of the measures agreed on Monday. These measures should find the negative vote of some members of Syriza and its allied party “Independent Greeks”, so the motion should be approved with the support of the opposition. Banks should open, but if the Cyprus experience is repeated, money withdrawals restrictions should be withdrawn gradually.
US markets ended with gains, extending the recent rise. The focus of investors was gradually turning from Greece to business results. JP Morgan opened the earnings season of the banking sector. The bank reported an EPS of 1.56 USD, which exceeded the estimated 1.44 USD. Revenues totaled 24,500 M.USD and it fits with predictions. The shares of JP Morgan appreciated 1.40%. Wells Fargo announced that in Q2 generated an EPS of 1.03 USD, in line with the estimated. Revenues fell short of the estimated yet the shares rose 0.90%. Retail sales suffered an unexpected bending in June (-0.30%), contrary to economists’ forecasts pointing to a growth of 0.20%. Today, after the reaction to the results to be published before the opening, investors on Wall Street will focus on the testimony of Janet Yellen in the House of Representatives. This testimony is held twice a year and is the most important moment for investors measure the expectations of the Fed regarding the evolution of the economy and as well as interest rates.
In the 2nd quarter, China’s GDP grew by 7%, slightly higher than the 6.90% estimated and in line with the objective of the Government’s growth. Industrial production increased 6.80% (vs 6% est.) in June and retail sales 10.60% (vs. 10.62 est.). The Department of Chinese Statistics said that these calculations were not “inflated, defending their position from the skepticism of some Western economists.