Changes in Stock Market and Euro-Dollar Relation

• 06.24.2015, 13:21
•  Europe,  World

The optimist that there will be a deal on Greek bailout, prevented an increase in global shares. Although there is still much till Greece and the European leaders are able to come to an agreement, stocks have start rising from Tuesday, Reuters reports.

the Head of research at Accendo Markets Mike van Dulken said that though there is still no Greek deal, there is an optimism that there will be an agreement between Greece and its creditors. The researcher based on the years of experience added that similar cases had a positive result. So, the positive changes in stock market are based on the prediction that Greece will stay in Eurozone. As Greece presented a new proposal on Monday, which was welcomed by European leaders, it gives signs of possibility to unlock financial aid for the country and it excluded the potential exit from the euro area.

Any political solution has direct impact on the stock market. In this case pan-Euroepan FTSEurofirst 300 index rose by 0.8 percent. The revenue from this stock was more than 2 percent on Monday. Greek stocks rose by 2.7 percent.

There are also positive changes in the euro-dollar relationship. Last week the euro was down 0.7 percent against dollar in the foreign exchange markets. Thursday morning the euro was traded at $1.1263, but on Thursday it was $1.1440.

The above mentioned shows that stability and integrity of Eurozone is so important for euro area’s economy and not only for those countries, but also for global market. So, the leaders of euro area will try to keep the reliability of single currency system, because everyone has macroeconomic advantage from it.