Dow+0.19% S&P+0.23% Nasdaq+0.26% Russell+0.43% VIX 19.97 (+1.58%) --> VIX Future @ 17.30 -8.10% vs 18.82 on close yest)
US Market closed higher but didn't manage to close above its 200d MA..opened on highs and closed near lows. With the Q2 earnings season about to heat up, investors received the first few reports with Alcoa (AA 10.59, +0.09) climbing 0.9% after reporting a bottom-line miss on better than expected revenue. The company reaffirmed its global aluminum demand growth forecast of 6.0%. Despite the higher finish, there were plenty of investors seeking downside protection today with the CBOE Volatility Index (VIX 19.91, +0.25) climbing above yesterday's session high. Volume were in line @ 800mil shares. Modest risk-on sentiment from US session has carried over into Asia, where investors are cheering the possibility of an 11th hour deal between Athens and European creditors. Ahead of the Eurogroup meeting Saturday and EU leaders summit on Sunday, Greek govt offered a sweeping and ambitious program to help keep its place in the eurozone. Reforms include VAT for hospitality industry, pension system changes, hike in corporate tax rate to 28% from 26%, and changes to collective bargaining by Q4 with intention of achieving primary GDP surplus of 1% in 2015 and 2% in 2016 in exchange for in new bailout funds and the ability to restructure long term debt. Analysts suggest the terms of this package are actually more austere than the terms of the deal voted down by Sundays referendum and could still produce opposition from the more left-wing members of Syriza party. Investors are responding very positively to the perceived stand-down by Athens in the conflict - EUR/USD rose 60pips toward 1.11, USD/JPY was up 80 pips around 122, and S&P futures wereup some 20 points. ose 60pips toward 1.11, USD/JPY was up 80 pips around 122, and S&P futures wereup some 20 points. The China equity market crisis also appears to have eased with another +5% rally in Shanghai Composite, albeit a good deal of the listed shares remain halted. In addition to yesterday's key measures preventing substantial shareholders from selling down their stakes in key companies, today CSRC issued a request for listed companies to consider more steps to cushion the market including buybacks, employee shareholding programs, and stock ownership incentives. Separate reports also noted PBOC has transferred at least CNY120B to China Securities Finance
Nikkei -0.25% Hang Seng +2.15% Shanghai +5.2%
Eur$ 1.1126 JPY 122 GBP 1.5410 EURCHF 1.0516 RUB $56.77 WTI $53.37 (+1.12%)
S&P +1.025 SX5E+2.49% DAX +2% SMI +1.62%
Macro :
- ’Grexit’ Raises Potential Geopolitical Risks, Trichet Says: FAZ
- Greek Proposals Positive Even If Differences With EU Remain: DB
- BofA Doesn’t See Sustained Rally in China Stock Markets
- China Funds Draw Large Inflows Even as Stocks Drop: StanChart
- VIX Futures Plummet After Greece Submits Plan Similar to EU’s
- Greece Seeks at Least EU53.5b in Bailout Loans: Parliament Bill
- China June Vehicle Sales 1.8m Units vs 1.9m Units in May
Keep an eye on :
- ALO FP : France rows back on coal export subsidies amid job loss fears - FT http://on.ft.com/1KYtlTn
- ATC NA : Altice’s Drahi Says Interested in Pursuing Cox, Cablevision: WSJ
- BT/ LN : BT CEO Says Company Wants Fair Regulation With Ofcom on Sky
- CRDA LN : Croda Preferred Europe Chemicals in F&F, Ingredients Group: SG
- HOLN VX : Holcim CEO Fontana Steps Down as Merger With Lafarge Closes
- KER FP : Kering Says Helene Poulit-Duquesne Appointed CEO of Boucheron
- KOG NO : Kongsberg Automotive 2Q Revenue Rises Vs Year Earlier to EU266M
- MKT LN : Market Tech Sells 90m Shrs at 223p/Shr
- MUV2 GY : Munich Re Unit Says May Reconsider EU90 Mln Greece Deal: WiWo
- PSM GY : Environment may be better now for a Pro7-Springer deal: watchdog http://reut.rs/1NWtoyQ
- PAH3 GY : Porsche on Track to Hit Profit Target - WSJ http://on.wsj.com/1NRMAx0
- SAN FP : Sanofi Introduces Oravet Dental Hygiene Chew for Dogs in U.S.
- S92 GY : SMA Solar Raises 2015 Rev., Ebit Forecasts
- TESB BB : Picanol Unit Buys Additional EU1.67m of Tessenderlo Chemie Stock
- UBI FP : Ubisoft 1Q Rev. EU96.6m vs Est. EU91.3m
- VIV FP : China Bans Online Music Services From Offering Unlicensed Songs
- VOW3 GY : Volkswagen’s China Partner Says Co. 1H Sales ‘Fail’: Auto News