BETTER NEWS ON GREECE BOOSTS EURO AND EUROPEAN SHARES -- THAT'S WEAKENING THE DOLLAR WHICH IS GOOD FOR GLOBAL STOCKS AND COMMODITIES
RALLY IN EUROPE AND EURO BOOSTS GLOBAL STOCKS AND COMMODITIES... News of more aid to Greece is giving a big boost to European stocks and the Euro. The first three charts show German, French, and British stock indexes jumping sharply this morning. All three are climbing back above their 50-day averages which suggests that the May correction has run its course. Charts 2 and 3 show French and British shares having bounced off major support at their 200-day lines. Corresponding strength in the Euro (not shown) is pushing the U.S. Dollar lower which is boosting global stocks and commodities. U.S. stocks are opening strong along with most commodities. Bonds are experiencing some profit-taking. Last Thursday's message showed the US Dollar Index up against formidable chart resistance and suggested that resumption of its downtrend appeared likely. It also showed larger emerging markets starting to bounce off their 200-day lines. Early indications suggest that those more positive trends will continue today as the US currency weakens.
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Chart 1
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Chart 2
