Greek deal done - what now?

Is it back to fundamentals?
Give them what they want and they don't want it. This expression fits very well to the present situation. Investors got a solution, for now, on Greece which had been demanded for months and when they got it, they chose to sell out. Stoxx 50 is currently down 0.5 percent. The second the ink had dried on the Greek deal papers investors and commentators were arguing that the deal is not enough and Greece will come back for more. Time will tell.

Is it back to fundamental analysis of economies and companies again? Well not yet. First we have the next central bank intervention with the European Central Bank's second round of its Long-term Refinancing Operation funding on February 29. This will provide further monetary accommodation to the Eurozone and in particular the European banking system and thus indirectly sovereign bond markets. With the second round of LTRO due in one week the ECB will likely get the first prize as having the largest balance sheet relative to nominal GDP in its economic region (see chart below).

US coming returns from holiday; Home Depot beats estimates
As stocks rallied in Europe yesterday US markets were closed due to a public holiday. Today US investors are back and the S&P 500 Index futures are currently up 0.3 percent indicating a higher open.

In pre-market, the Chicago Fed National Activity Index for January printed 0.22, in line with expectations and signalling that the US economy is expanding above trend. Most surprisingly December's figures were revised up to 0.54 from 0.17.

On earnings, Home Depot reported Q4 EPS of 0.50 beating estimates of 0.42 driven by mild weather helping residential spending. The shares are up 3.1 percent in pre-market trading.

Later today Eurozone consumer confidence advance figures for February are expected to come out at -20.1, slightly up from -20.7 in January.