Today’s parliamentary vote ensured that Greece can satisfy the terms set by the European Union on the next release of the debt-saddled country’s bailout funds.
This, in turn, will allow Greece to make its July bond payments and keep the country from insolvency over the immediate term.
While the Greeks themselves are not happy with the cost-cutting required to keep the EU happy, traders are evidently quite pleased to see the euro dodge another looming crisis.
The euro ETF (NYSE:EU) is up and the dollar is losing ground:
This, in turn, has given commodities a boost. Brent crude has surged 10% — extremely quietly — since touching a low of $102 a barrel Monday morning.
You can see this move in the Brent ETF (NYSE:BNO):
Meanwhile, the spread between the European-heavy Brent and the U.S.-heavy West Intermediate grade has narrowed significantly.
Analysts now expect the two grades of oil to converge in terms of price, and in theory BNO could even return to its long-term trend of trading at a slight discount to the United States Oil ETF (NYSE:USO) at some point.
Emerging Money provides insightful and timely information about the increasingly important world of Emerging Market investments. CNBC Emerging Markets Contributor Tim Seymour leads the team of Emerging Money to bring you cutting edge global news and analysis.
About Tim Seymour: Tim is a founder of Emerging Money. He is a founder and Managing Partner at Seygem Asset Management, and The Emerging Markets Contributor to CNBC. Seygem Asset Management focuses on investing throughout the global emerging markets asset class. With a view that emerging and developing economies will continue to outpace the economic growth and advancement of developed economies, Seymour has devoted a career to investing in the dominant markets of tomorrow, today. Seymour’s career has included significant experience in both alternative asset management (hedge funds) and capital markets, having launched two hedge funds, and built the largest Russian broker dealer in the USA. Seymour started his career at UBS, focusing on international credit (cash, swaps, forex) in a specialized hedge fund group (New York). Seymour completed the firm’s training program after graduating with an MBA in international finance from Fordham University. Seymour received his undergraduate degree at Georgetown University.