SHANGHAI, Jul. 10 (SMM) – Greek cash crisis eased a lot on Thursday night. Greece’s government has agreed a reform program and already submitted its proposals to eurozone officers. The reforms are thought to include tax rises and pension changes. Greek media are reporting that the reforms will be put to the Greek parliament on Friday for approval. European Union will hold an emergent summit on Greek crisis this Sunday, which should be closely watched.
Chinese shares staged a strong rebound on Thursday, with the benchmark Shanghai Composite Index leaping 5.76%, its highest daily rise in six years. The Shenzhen Composite Index and Growth Enterprise Market (GEM) Index surged. Hong Kong’s Hang Seng Index was up 5%. Those factors alleviated market worries.
Economic indicators from China and US were disappointing, which however, failed to impact markets. China’s CPI grew 1.4% YoY in June while PPI fell 4.8% YoY, negative for 40 months, fueling risk of deflation. Thus, markets expect the requirement reserve ratio and interest rate to be cut in Q3. US last week’s initial jobless claims exceeded 297,000, over expectation and the highest in two months. But the claim number mirrored an improvement in labour market.
Global stocks all increased. LME base metals jumped across the board.