Global equity markets perform positive on Greek deal

Markets rally as Greece finally wins conditional agreement to receive third bailout package after months of negotiations

Photo by: Reuters
Photo by: Reuters

Updated Jul 28, 2015

Welcoming the idea of keeping Greece afloat and in the eurozone, world equity markets performed well on Monday. After agreeing with its creditors, Greece now faces tough measures, however in return talks on an €86 billion bailout fund will be initiated.

Upon the Greek deal European equity markets rose more than 1 percent. The euro initially rose on the news, however after a while it reversed its gains and fell more than 1 percent.

Although markets reacted positively on the news, investors are anxious about the future. According to analysts, markets’ Monday performance might be temporary, since it’s not certain whether the Greek Parliament will accept the proposal on Wednesday.

The eurozone's Euro STOXX 50 index rose 1.9 percent and hit a two-week high, while the pan-European FTSEurofirst 300 index gained 1.8 percent to 1,570.51. Meanwhile, the euro fell 1.13 percent to $1.1036, while the dollar gained 0.59 percent to 123.46 against the yen.

On Wall Street, the Dow Jones industrial index rose 1.07 percent to 17,950.12, while the S&P 500 increased 0.89 percent and the Nasdaq Composite added 1.18 percent to 5,056.85.

Oil prices, on the other hand, fell as Iran and six world powers appeared to be agreeing on the nuclear deal which would end sanctions on the country. The deal will allow more Iranian oil onto world markets, adding to the potential glut. Following the talks, Brent crude fell 53 cents to $58.20 a barrel and the WTI was down 20 cents at $52.54 a barrel.

TRTWorld and agencies