Market In-Review: Greek Reset Helps Boost Markets

• Additional signs of no-Grexit help boost European Equity
• DAX adds 3.2% during week while CAC 40 completes 8-day gaining streak
• U.S. equity moderately gains on positive earnings season with expectations for rate hike
• USD strengthens amid hawkish Yellen remarks
• Iran deal makes oil prices drop to their lowest since April

The further dissolving of Greek concerns has helped support European markets throughout the week. The German DAX saw a 7-day consecutive ending on Thursday, concluding no less than a 9.74% increase. Weekly gain for the DAX stands at 3.16%. The CAC 40 currently sees and 8-day streak, the longest since January, helping the French Index secure a 11.29% gain during the streak as a whole, and 4.51% in the last week alone.

The week was off to a good Monday start, in news of Greek Prime Minister Alexis Tsipras agreeing to Germany’s EUR 86 bln bailout offer, helping prevent a Grexit. Supporting the rally, Thursday saw the Greek parliament approving austerity measures demanded by the Greek creditors. In the press conference following the ECB's rate announcement, ECB President Draghi also helped ease concerns, as he expressed a positive outlook for keeping Greece in the Eurozone. "The ECB continues to act on the assumption that Greece is, it is of course, and will remain, a member of the euro area", Draghi replied, when asked whether a temporary Grexit is possible. He further added that the ECB Raised the Greek Emergency Aid (ELA), and that it will increase by EUR 900 bln over the course of one week.

U.S. Markets pressured by expected rate hike

Economic data continues to supply evidence for an improving U.S. economy. This includes the weekly Initial Jobless Claims falling to 281K, after hitting a two and a half month high of 296K, in the week before. Additional improving data include an increase in annual inflation to 0.1%, from 0%, hinting on an improving demand side. Adding to the data's linkage to the anticipated Fed rate hike, Fed Governor Yellen said that "if the economy evolves as we expect, economic conditions likely would make it appropriate at some point this year to raise the federal funds rate target."

With a Grexit being less of an issue for the U.S., the same goes for recovering from it. Coupled with the aforementioned negative monetary sentiment U.S. markets have generally underperformed compared to the European ones. The S&P 500 (SPY) added a total of 2.41% during the week and the Dow Jones  (DIA) increased by 1.84%. U.S. technology, on the other hand is enjoying a rather positive earnings season. Google's (GOOG) stock stood out On Friday after beating expectations, leading the internet behemoth to see a 16.26% daily gain. The Nasdaq (QQQ) itself added a rather impressive 4.25% during the week.

The hawkenning in U.S. monetary policy also helped support the Greenback. EURUSD decreased a total 2.98% during the week. At 1.083 the currency pair is at the lowest it has been since late April.

Oil prices experienced quite a volatile week, after Iran reached an agreement with world powers over its nuclear program which is expected to lead to a lifting of Iran's sanctions helping it export oil again. Oil lost USD 1.85 per bbl during the week to USD 50.89, its lowest since early April.