The Greek stock market managed to “absorb” most of yesterday’s losses today in a “spring” reaction, with buyers dominating across the board in the best session in 4.5 years. The rebound comes after a three-day crash that cost a cumulative 13.46%, resetting this year’s gains to zero and “wiping” about 15 billion euros from the market capitalization. The reaction was also convincing in the rest of Europe’s stock markets, with Athens showing a better picture, waiting for the news that “smells”… an upgrade from the FTSE Russell.

Specifically, in Tuesday’s (8/4) session, the General Index gained 91.61 points or +6.19% to close at 1,570.53 points, moving between 1,504.97 (low of the day) and 1,581.99 points (high of the day). This is the strongest daily rise since November 9, 2020, when the GD had “soared” by +11.46%. The intraday return now stands at +6.86%.

Banks, which had taken the biggest “hammering” from Trump’s tariffs, led today’s rise, with the sector index jumping +8%. Buyers positioned themselves in Tuesday’s session with the same massiveness as the previous quarter’s selling, taking advantage of the attractive entry points created. In this context, turnover exceeded 300 million euros, with most of the transactions involving the systemic banks. A double-digit rise was recorded by some securities that had come under heavy pressure. Intertech closed at the limit up (+30%), after the activation of the public offer by the main shareholder, CD Media.

The rebound in markets and the FTSE Russell oracle

Athens yesterday posted its biggest daily fall (-7.43%) in more than 5 years (March 2020), closing below the psychological 1,500 point level and erasing virtually all of this year’s gains. Stock valuations are attractive after the unprecedented pullback, considering the increased target prices given by brokerages and international investment houses before the Trump tariffs “storm” broke out.

Investors in stock markets around the world are reacting today after the $10 trillion “bleeding” caused by Donald Trump’s trade war in the last three sessions. Markets are moving upwards, recovering in part from the “slide” of the previous days, although sentiment remains fragile in the face of uncertainty over US tariffs and retaliation from China and the EU.

The reclassification of Greek stocks by the FTSE Russell is now the focus of the domestic market, with crucial announcements expected tonight after Wall Street closes. According to the baseline scenario, the FTSE will reclassify the Athens Stock Exchange to developed markets from the advanced emerging markets where it currently stands. It should be noted that HA is on a watch list for a possible upgrade from autumn 2024, and it met all criteria except for the investment grade, which Moody’s had not yet given. However, last March, this milestone was reached, so the “road” to an upgrade is open.

On the corporate results front, Fourlis will release its annual financials after the close of today’s session. Quest will be next on Wednesday (9/4), followed by EYATH on Friday (11/4). Standard and Poor’s Greek credit rating will take place normally on Good Friday, 18 April, even though markets will be closed on that day due to a public holiday. The US agency rates Greece as “BBB-” with a positive outlook, while in the case of an upgrade, it will rise to “BBB” with a neutral outlook.

Buying spree on major international stock markets

“Confusion” prevailed on Wall Street after the tacit releases with the tariffs and rumors of a 90-day suspension of their implementation. However, the information turned out to be “fake news”, with the White House rushing to deny what was circulated. This resulted in the key indicators turning into a “roller coaster ride”, with extreme intra-congressional swings. US indices rebounded today, with the Dow Jones gaining over 1,400 points (+3.7%), while the Nasdaq moved higher by +4.4%.

Most European bourses are up at least +3% today, as part of a gradual market reaction. The Stoxx 600 is up +3.7%, trading at 491 points. Gains of around +3.3% to +3.6% for the main indices of the Old Continent. The Asian markets recorded a strong recovery, with the Nikkei index in Tokyo standing out, recording a “jump” of +6% or around 1,900 points. The catalyst for the rise was the channel of communication opened by Japan and the US to start bilateral trade talks.