Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
In the pre-opening, the European indices were negotiating without major fluctuations. Greece will remain the dominant theme. Today the Bundestag and the Austrian Parliament will decide on the agreement reached with the Greek government. What will be put to the vote is not the program itself but the authorization to be carried out negotiations on the details of the support plan. Meanwhile in Athens, Prime Minister Alexis Tsipras will have to make some changes to its executive but said yesterday that will rule with or without an absolute majority until finalized the agreement with creditors.
The American market closed higher, in the aftermath of the vote in the Greek Parliament and as a reflection of some economic data and positive corporate results. The earnings season has been dominated in recent days, the banking sector, which has managed to surpass analysts’ estimates. Citigroup reported an EPS of 1.51 USD, which compares with 1.45 USD estimated by analysts. Revenues totaled 19500 M.USD, which also exceeded the estimated 19110 M.USD. Citigroup shares were up 3.77%. Goldman Sachs reported a quarterly profit of 1.98 USD per share, well below the estimated 3.70 USD, penalized by costs associated with lawsuits, as well as by lower revenues from trading. Shares of Goldman Sachs devalued 0.84%. At the macroeconomic level, the strength of the construction industry reached in June the maximum of the last 10 years. The increase in the income of Americans, the greater access to credit and the decrease in supply of homes for sale has led to a general rise in property prices, which translates into greater confidence. The weekly claims for unemployment benefits last week amounted to 281,000, slightly lower than the 285,000 estimated. The Philadelphia Fed Manufacturing Survey stood at 5.7, significantly below the 12.0 expected. Subsequently, attention will now fall on the publication of inflation, measured by consumer prices. In his testimony before Congress, Janet Yellen said that one of the conditions for a rise in interest rates is the continued rise in inflation.