“Markets are constantly in a state of uncertainty and flux, and money is made by discounting the obvious and betting on the unexpected.” – George Soros

1. Iran and Major Powers Reach Nuclear Deal — Iran and six major powers clinched a historic nuclear deal last Tues. Iran is allowed could carry out “specific research and development (R&D) activities for the first 8 years” of the deal, with further enrichment activities possible afterwards, “for exclusively peaceful purposes,” according to a copy of the JCPOA posted on the Russian government’s Facebook page. Tehran is also not permitted to stockpile large amounts of enriched uranium. Oil prices came under pressure following the news, in anticipation of Iran bringing more oil onto the market and forcing prices down.
2. China 2Q GDP rose 7% — China GDP rose 7% in the three months through June, making it more likely the country will hit its 2015 growth target of about 7%. Despite the upbeat economic data, Chinese shares extended their slump. Some 696 mainland firms remained suspended from trading, representing about a quarter of the number of companies listed on Shanghai and Shenzhen.
3. Retail Sales Disappoint Again — Sales fell 0.3% in June, defying expectations for a 0.3% gain, while a sizable 1.2% increase in May was revised down to 1.4%. Ex autos, the June drop was only 0.1%. The latest data will likely reduce the Q2 GDP. Retail Sales comprises about 70% of US GDP.
4. Eurozone Finance Ministers Agree to Third Greek Bailout ‘in principle’ — the Eurozone finance ministers reached a decision to grant Greece “in principle” a 3-year bailout from the bloc’s bailout fund, but that this was “subject to the completion of relevant national procedures.” The measures were approved by the Greek parliament in exchange for up to €86 billion in fresh loans; However, 32 members of PM Alexis Tsipras’ Syriza party voted “No”, a sign the premier may have lost his majority.
5. China Unleashes $483 Billion to Stem the Market Rout — Bloomberg, China has created what amounts to a state-run margin trader with $483 billion of firepower, its latest effort to end a stock-market rout that threatens to drag down economic growth and erode confidence in President Xi Jinping’s government. China Securities Finance Corp. can access as much as 3 trillion yuan of borrowed funds from sources including the central bank and commercial lenders. The money may be used to buy shares and provide liquidity to brokerages.

The week ahead — Economic data from Econoday.com:

Tags: Greece Bailout, Iran Nuclear Deal
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