Greek bailout boosts market confidence

Investors breathed a sigh of relief that Greece may not default - with the Eurozone ready to support the debt-laden country.

The markets concluded that about $40 billion on offer from the Eurozone and the IMF will be enough to stabilize the Greek debt crisis. The EU commission also agreed on a three-year financing deal at a fixed interest rate of around 5% – less than the markets have been demanding in recent days.

Mark Rubinstein, Deputy Research head at IFC Metropol says Investors hope Greece won't have to touch the money.

“The biggest impact that this package is going to have is the psychological impact – it's going to give investors extra assurance that Greece is not going to default and so investors might be more willing to participate in the Greek upcoming placements.”

The markets are not worried just about Greece – which represents only 3% of the EU's GDP. Garegin Tosunyan, head of the association of Russian banks says the broader issue is what happens to other indebted countries.

“We're not indifferent to what's happening in the European Union and in Greece in particular and, thank God, Europe was wise enough not to turn its back of its members' problems and to offer a bailout plan.”

But if the Greek debt crisis finds a parallel in Portugal or Italy, for example, the damage to the Eurozone would be felt worldwide according do Vladimir Milovidov, Head of the Federal Financial Markets Service.

“This all impacts the euro rate, which causes dollar fluctuations, and dollar is the key currency for Russia's raw materials trade. However, recently we've seen a trend that a strengthening dollar doesn't automatically lead to a lower oil price.”

Investors say as long as the crucial raw materials markets remain stable, Russian stocks will find support.