Market Action

• With an agreement between Greece and its creditors secured over the past weekend major averages around the world rallied and renewed optimism for equity investors. The Technology and Financial sectors led the way in the U.S. thanks to strong earnings from key companies such as Google and JP Morgan.
• European creditors agreed to provide Greece a €7 billion bridge loan before a third bailout package can take effect. The bridge loan allows Greece to meet its upcoming ECB payments and pay the IMF in arrears. The deal calls for Greece to essentially adopt the same measures rejected during the referendum.
• With the provision of almost $500 billion from the central bank to China Securities Finance, a margin-financing firm, markets in Shanghai posted gains this week. The government also reported GDP growth of 7% for Q2, higher than expected, in large part due to the performance of brokerage houses.
• Mark Carney and Janet Yellen both made headlines this week by articulating expectations for rate increases. Ms. Yellen affirmed the expectation to raise rates this year while Mr. Carney of the Bank of England surprised markets by saying that economic progress across the Atlantic has put tighter monetary policy on the table sooner than expected.
• Spot gold prices hit a five-year low on Friday despite a report that China has vastly increased its gold reserves over the past several years.
• Saudi Arabia reported record oil production on Monday. Combined with an agreement between the world’s nuclear powers and Iran, oil prices slipped further on the week. Elsewhere in energy, natural gas overtook coal as the top fuel input for power generation for the first time.
• Mexico put up 14 blocks of energy reserves for sale this week but only two deals were executed. Analysts say the low number is normal considering it was Mexico’s inauguration to sales and more profitable blocks are expected to be auctioned later this year.

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