Greek stock market plunged by 23%

Yesterday, the Greek stock market reopened after a five-week closure. The drop was a colossal 23% majorly due to capital control restrictions. The ASE benchmark recorded a historical minimum of 615.50. Bank shares (Piraeus Bank SA and National Bank of Greece SA) fell harder, with 30%. At the press conference on Friday, Greece’s Finance Minister said that due to the limited withdrawal amounts, traders can only choose between warrants, bonds, derivatives, stocks with the new funds. When referring to new funds, these can be capital infusions received from abroad, earnings from future sale of shares, cash deposits at banks or positive balances in brokerage accounts.

Taking a step back to a Union level, the Eurozone’s seasonally adjusted PMI (Purchasing Managers Index) hasn’t shifted much from last month’s benchmark, falling slightly under June’s 52.5 and reaching 52.4. Hence, July’s reading beat the expected 52.2 with a positive 0.2. Despite the slow increase of new export business and new orders (lowest increase since January and April), official reports state that there are improvements in the number of export clients and also in the new business of domestic clients. The weaker Euro inflicted an upward trend to input prices, which lasts for 5 months now.

Great Britain’s seasonally adjusted Markit/CIPS PMI (Purchasing Managers Index in constructions) had a positive grow, reaching 51.9 after a 26-month low in June (51.4). The manufacturing employment went up last month also, reaching the 27^th month milestone of continuous expansion. There was a decline though in the growth rate of new export orders, mainly because of the competitiveness between the Euro and the Sterling. Also, the average input price changed its upward trend, breaking the 10-month rising spree.

In the US, June’s personal spending figures went up, lifting the whole quarter’s economic performance. The forecasts have been correct, the expected 0.2% rise in June being lower than the 0.7% (previously 0.9%) rise in May. There has also been an increase of 0.4% in income (third monthly rise in a row), which this time has exceed the expected value of 0.3%; the previous month’s rise has been revised from 0.5% to 0.45%. The consumer’s spending price index went up with 0.2% in June against May, rising with 0.3% regarding to June, 2014. The Manufacturing PMI published by the Institute for Supply Management has fallen, reaching 52.7 in July from Junes’ 53.5, missing the 53.5 forecasted value. The Markit PMI came out 53.8, in line with the analysts forecast reports.