Stock indices are financial markets made up of individual underlying stocks. Learn the basics of stock market indices and how each of them are valued

The financial market has started to look beyond the short-term Greek situation, which is being reflected through the pickup in risk sentiment and a very strong bounce in equities. Whilst there are still a number of issues for the market to work through, the storm clouds have been replaced by overcast skies.

In the countdown to the Eurogroup finance ministers meeting on June 20, the Fed’s monetary policy meeting on June 21-22, and the EU Summit on June 23-24, the main theme of the week ahead will be inflation as traders focus on the gauges of inflationary pressures from some of the world’s largest economies- China, the U.K., the Euro-zone, and the United States.

This week’s action in the foreign currency markets has been dominated by choppy, two-sided trading. Traders seem to be looking for improved risk appetite but can’t find the catalyst that will propel the markets to new highs for the year.