Three things to watch this morning

Published 13/07/2015, 08:27 pm
© Reuters.  Three things to watch this morning - Monday, July 13

Greece reaches long-awaited bailout deal

A deal over a third bailout deal for Greece was reached after marathon all-night talks between European leaders on Sunday.

European Council President Donald Tusk said early Monday that a program for Greece was "all ready to go", "with serious reforms and financial support".

The Greek parliament must pass new legislation on Monday and Tuesday to implement the measures agreed in Brussels, including on pensions reform and a new sales tax regime. Parliaments in several euro zone countries will also have to approve any new bailout.

Eurogroup President Jeroen Dijsselbloem said talks on bridge financing for Greece will begin immediately, to help cover its debt repayments this summer. He also said that €50 billion of state owned Greek assets would be set aside in a fund to contribute to the recapitalization of Greek banks.

Chinese trade data beats expectations, but concerns remain

Chinese trade data released earlier showed that the country’s trade surplus narrowed to $46.5 billion last month from $59.5 billion in May, compared to estimates for a surplus of $55.7 billion.

Chinese exports rose 2.8% from a year earlier, beating forecasts for a decline of 0.2%, while imports fell 6.1%, better than expectations for a drop of 15.0%.

A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.

China is scheduled to release data on second-quarter gross domestic product on Wednesday. The report is expected to show the world's second largest economy grew 6.9%, slowing from 7.0% in the preceding quarter.

Talks on Iran's nuclear deal continue

According to media reports, Iran and six world powers neared a long-awaited nuclear deal that would end sanctions on Tehran in exchange for curbs on the country's disputed nuclear program.

A deal is viewed as bearish for crude prices, as Iran reportedly hoards 30 million barrels of oil in its reserves ready for export.

An outflow of Iranian oil could depress crude prices in a global market already oversaturated by a glut of oversupply.

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