Tuesday, June 23, 2015

European and US stock market bullish as hopes Greek debt consolidation close to deal

Greek debt consolidation is going on and close to deal, Finally U.S. stocks ended higher on Monday, with the Nasdaq closing at a record as hopes grew that a deal would be reached to prevent Greece from defaulting on loans. European Union seems to giving more about the bailout

Most of stocks and Equities have been largely driven by the situation in Greece of late, with investors concerned that if the country defaults on its loans, it may have to leave the euro or the European Union, potentially shaking the region's economic foundations. And shaking the global stocks market

Athens governor presented new reform proposals which were cautiously welcomed by euro zone finance on Monday, though the Eurogroup said the proposals required detailed study and that it would take several days to determine whether they can lead to an agreement. Greece needs fresh funds to avoid defaulting on a $1.8 billion debt repayment to the International Monetary Fund on June 30. This is really really urgent

"This takes one anxiety off the table, even if it doesn't yet resolve the primary issues that made investors anxious in the first place," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, Ohio.

Global stock market Sentiment was also lifted by merger and acquisition activity. From The S&P energy index rose 1 percent as the top-performing sector of the day after Energy Transfer Equity LP confirmed it had made a $48 billion unsolicited bid for Williams Companies Inc, hours after Williams rejected the offer as significantly too low.

Because of this, Shares of Williams surged 26 percent to $60.90 and were the biggest percentage gainer on the S&P 500 by far. And going more bigger, meanwhile Cigna Corp equities rose 4.8 percent to $162.65 after the health insurer rebuffed Anthems $47 billion merger proposal on Sunday. Anthem rose 3.6 percent to $171.04. Saga merger is happening

As reported From USA stock market, The Dow Jones industrial average rose 104.53 points, or 0.58 percent, to 18,120.48, the S&P 500 gained 13 points, or 0.62 percent, to 2,122.99 and the Nasdaq Composite added 36.97 points, or 0.72 percent, to 5,153.97.

New record for Nasdaq stock market, the Nasdaq ended at a record while the S&P closed 0.3 percent away from its own record close. Currently, the S&P trades at 17.3 times earnings, according to Thomson Reuters data, above its long-term average.

"Valuations are somewhat high, but there aren't many alternatives that look attractive," said McCain. "Stocks will probably get a lot higher before there's any serious risk of a pullback on valuation."

Source :Reuters

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