Stock markets rebounded yesterday, as U.S., Asian and European shares show gains. In Europe, a new Greek effort to reach an agreement on a new cash-for-reforms bailout proposal has created hope that the crisis will finally be over. The Greek parliament will vote on the new tax hikes and pensions reforms, as ruling party members remain optimistic on support. However, creditors have not yet responded to the latest proposals, creating some concerns that optimism may be premature. The improved prospects sent European markets on a rally. The Stoxx Europe 600 added 2.2% to trade at 281.06, with the financial sector showing the best performance. The German DAX 30 added 2.3% to trade at 10996.41. The French CAC 40 gained 2.6% to trade at 4757.22. Spain’s IBEX 35 rallied an impressive 2.7% to trade at 10706.40. The shared currency also saw a significant boost as well, as euro bounced 0.8% against the dollar to trade at $1.1126. The euro also gained on the Japanese yen, adding 1.3% to trade at 135.63 yen, after falling to a six-week low of 133.3 yen.
Asian shares gained early on Friday as the market rallied for a second day. Chinese stocks were lifted by the many support measures put in place by Chinese authorities. The support reduced the panic selling that has so far been behind a 30% decline in Chinese shares since its mid-June peak. Despite a 1.3% gain, MSCI’s broadest index of Asia-Pacific shares outside Japan is still on track for a 3% weekly loss. Shanghai’s benchmark composite index added 5.3%, and the CSI300 index of the largest listed companies in Shanghai and Shenzhen added an impressive 6% overnight.
U.S. stocks also ended higher on Thursday, although they started to wane towards the end of the session as Asian concerns pulled the market down. The Dow Jones industrial average gained 33.20 points, or 0.19%, to trade at 17548.62. The Standard & Poor's 500 index climbed 4.63 points, or 0.23%, to trade at 2051.31. The Nasdaq composite rose 12.64 points, or 0.26%, to trade at 4922.40.
European industrial production is scheduled to release early today, followed by some words from Federal Reserve Chair Janet Yellen around mid-day. Eurozone leaders will convene on a summit over the weekend, and are expected to announce any new decisions or policies on Sunday. In particular, issues regarding Greece will have a significant effect on trading the next day.