European leaders had to be breathing deep sighs of relief when their markets closed.
At least momentarily, it appears the bleeding has been stopped, both in terms of lost confidence, and in the endlessly collapsing euro.
Mike O’Rourke at BTIG looks at where markets have come since the bailout:
It is interesting to note that as of today’s close, since the EU’s “Shock & Awe” intervention, the Stoxx 600 in Europe is up 4.6%, while the S&P 500 is only up 2.35%. For an apples to apples comparison, the Euro currency has lost 2.8%, bringing the Dollar denominated return for the Stoxx 600 to 1.8%. The CAC 40 in France has similar Dollar denominated returns of 1.6%, while returns on Italy’s MIB are 2.4%. The FTSE in the U.K. and the Ibex in Spain are both flattish in Dollar terms and Athens is down 2.5%. The Dollar denominated performance winner is also the country viewed as the largest beneficiary of the weakened Euro, Germany, which is up 3.3%. Obviously, U.S. markets were outperforming by a healthy margin prior to the EU announcement, but major intervention provides an interesting benchmark from which to measure.
Beyond that, on a technical level, Greece is literally getting the first 20 billion eur from the bailout fund — a technical move, but given the worries about the bailout mechanism, a move that’s welcome and calming.
A look at the day’s action shows the extent to which the currency is still calling the shots.
Meanwhile, the good times continue elsewhere. The Nikkei is up about .5% in early action, a welcome move after yesterday’s big selloff.