Thanks to a surge in markets on Friday major indices in the U.S. closed the week in positive territory. The main catalyst for the upswing was a deal reached between Greece and the Eurogroup for continuing the current program.
The deal between Greece and the Eurogroup extends the current financing deal through June on the condition that the Eurogroup signs off on policy proposals Greece will present on Monday. Should the Eurogroup give the go ahead Greece will then prepare efforts for an April deadline of further reforms. Both sides expressed pleasure with the deal, with the Greeks emphasizing flexibility in targeted fiscal surpluses going forward and their counterparts highlighting reforms being made.
The ECB announced that further liquidity channels would be made available in light of the deal. 500 million Euros had been fleeing Greece daily this week according to Reuters.
Japan reported GDP growth of 2.2% this week, bringing the country out of recession. However the figure is far below forecaster’s projections of GDP growth north of 3.0%. Export growth, released later this week, did come in far stronger than expected.
Oil inventories continue to put downward pressure on energy prices and, as a result, the shares of the sector. The IEA this week warned about disrupted investment from ISIS’ growing presence in the Middle East but markets placed greater weight on burgeoning supply levels and low demand.
German and French PMI came in stronger than expected this week, as did European Consumer Confidence.
British inflation levels continued a downward trend per data released this week. The information makes it less likely the central bank raises rates anytime soon.
Wholesale prices in India hit negative territory according to a government release. The fall in prices support many analyst’s forecasts that the Reserve Bank of India will continue to cut interest rates in 2015.