Despite disappointing durable goods orders data, U.S. stocks strengthened yesterday with modest gains, most likely on rekindled optimism that Greek’s financial crisis may be nearing its end. The NASDAQ added only 0.12% but that was enough to place it at a new record peak of 5160.09. The Dow Jones showed the most gains with a 0.13% rise to 18144.07 and the S&P 500 added only 0.06% to trade at 1224.20. However, the Greek government’s confidence that their parliament would approve the deal with creditors may be overly optimistic. Details of the deal spurred negative reactions, mostly criticizing the addition of taxes on an austerity-weary Greece. The government defended their proposal, stating that the taxes were necessary and mostly aimed at higher-income workers. However, critics in the parliament have been very vocal about their inability to support the plan. European stock markets continued to rise on Tuesday as well. The UK FTSE added 0.3% as Diageo (LONDON:DGE), Meggitt (LONDON:MGGT) and Sport Direct International rose between 1% and 3.2%. The German DAX rose 1.3% as BMW (XETRA:BMWG) and Daimler (XETRA:DAIGn) lead the gains with 2.5% and 2.1% respectively. The French CAC rose 1.3% as broad gains lifted the index.
The EUR/USD declined as traders look past better-than-expected in Eurozone manufacturing data. The euro recouped some of its losses and reached as high as 1.1201, but remained distant from its 1.1410 high reached at the beginning of week. The dollar also strengthened against the yen, moving back above 124 yen and away from its recent 122.46 low. The euro weakened against the Japanese yen, falling to 138.5 from 140.
Crude oil rose higher as doubts over the deal with Iran curb oversupply concerns. Additionally, the Energy Information Agency (EIA) stated earlier this month that it expects U.S. oil demand to grow this year, adding support to crude oil. Crude inventory reports are expected to release later today. Expect shifts in pricing according to gains seen in supplies.
Traders are looking forward for today’s release of French and U.S. GDP data. Later in the day, the EIA will release its crude oil stockpile report, detailing the addition of supplies over the last week.