The Bulls are Back

On Monday, European markets made incredible gains as hope for a Greek deal became tangible. Below is a graph of major European Indices and how they have performed over the past month. Between yesterday and today, most of the losses have been totally reversed.

Screen Shot 2015-06-23 at 17.51.28



The star performer is Greece, up over 16% in two days, up 6% yesterday.

Screen Shot 2015-06-23 at 17.55.40

The recent decline in European stocks is due to the fact that Greece is very close to defaulting on it’s $1.8 Billion loan from the IMF. If the former happens, Greece risks being flung out of the European Union as well as the Euro currency, which could be a travesty to Greece and Europe. If that happens, the world economy might not make any significant gains this year.

The deal being formed is believed to include:

  • New taxes on businesses and the wealthy
  • Selective increases in VAT
  • Savings in pensions linked to curbing early retirement and increasing pension contributions
  • No further reductions in pensions or public-sector wages – “red lines” for Greece’s Syriza government



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