FXstreet.com (Barcelona) – The Eurogroup decided to disburse the first bank aid tranche of €30B to Spain in July, which improved sentiment as well as the waiting for the German constitutional court decision about Germany’s participation in the ESM/fiscal pact.
However, the Ecofin meeting also “allowed” Spain to print a deficit of 6.3% of GDP this year after having failed its initial target of 5.3% (already revised from 4.3%): “That does not exactly create confidence in the purpose of the deficit mechanism”, wrote Commerzbank analyst Ulrich Leuchtmann.
China trade balance data points weakening imports much more than expected from 23.7% to 6.3% in June, pointing to declining domestic demand in the country, which hurts the global economy.
The German DAX 30 and the French CAC 40 are up by +1.30%, while the Spanish IBEX 35 and the Italian FTSE MIB rise by +1.70%. The British FTSE 100 gains +0.90%.
Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher open by +0.30% ahead of the US earnings season. WTI crude oil is trading at 85.77 (-0.23%) and Gold at 1595 (+0.43%).