US Fed

The Greek stock market was awaiting the evening verdict of the US Fed on interest rates - which proved bold enough with a 50-basis point cut - so while Wednesday's session at Athinon Avenue proved subdued enough, Thursday's will likely be more vibrant.

Stocks grew at Athinon Avenue on Tuesday for a third day in a row, with the benchmark closing on the day's high, as did the banks' index. It was once again the closing auctions that significantly improved the picture on the stock board, and they were responsible for the increased turnover, too. The market is now focusing on the interest rates verdict of the US Fed on Wednesday.

The vast majority of Greek stocks ended Thursday's trading session with gains, but some non-bank blue chips held the benchmark back from hitting a new nine-year high and the 1,350-point level, which remains elusive for now. The positive messages from the US Fed and the European Central Bank create a favorable climate for further price growth in the coming days, analysts note.

The banking crisis that hit Silicon Valley Bank (SVB) last week has spread. We recall with a shudder two recent financial contagions: the 1997 Asian Financial Crisis, which led to a deep Asian recession, and the 2008 Great Recession, which led to a global downturn.

The US Fed and European Central Bank rate hikes went largely according to expectations, so eurozone stock markets, including Greece's, proceeded smoothly on Thursday with sessions of mild gains.

Banks supported the fresh increase of the Greek bourse benchmark to another eight-year high on Wednesday, as the trend of the local market remains upward in spite of the odd case of cashing in the significant gains of the last few weeks. Some more extensive profit-taking appears overdue, but buyers continue to have reasons for raising stock prices.

Greek government bond yields fell sharply to new all-time lows on Monday after snap elections which saw Greece's opposition conservatives return to power, sparking hopes there will be a renewed focus on strengthening economic recovery.

The US deficit stands at $20 trillion and will rise to $30 trillion in a decade. That should be a reason for concern, according to the US Fed.

"I believe the Federal Reserve should be gradually and patiently raising the federal funds rate during 2018," Dallas Federal Reserve Bank President Robert Kaplan said on Wednesday.