At the beginning of the week, hopes were high that we were close to an accord between Greece and its creditors. As the week draws to a close, and despite constant summits and meetings, we still do not appear to be any closer. After the previous proposals were rejected, there does not appear to have been any further traction between the interested parties and things appear to be going to the deadline yet again.
Leaders of the EU member states are continuing their summit in Brussels today. The markets will be looking closely at any rhetoric coming out of this. If the impasse remains, a Grexit is a huge possibility and then we are into the unknown. If negotiations are successful we may see the Euro strengthen, although by how much is a moot point as the market appears to have priced in a resolution of sorts.
Angela Merkel has stressed that it is necessary for both sides to reach a conclusion - on Saturday there is a special Euro Group meeting intended to sort this out. She has said there will be no more money for Greece but “that this Euro group is of decisive importance, taking into account that time is very short and that a result must be worked on.”
One can’t help but think that the timing of David Cameron in speaking to Euro member states for EU reform was ill-judged at best!
It is a bit quiet on the data front today although Mark Carney should be of some interest this afternoon when he makes a speech.
Have a good weekend!
Posted in Daily Market News on Jun 26 2015
Yesterday’s newsletter was full of optimism that we may have seen a breakthrough between Greece and the Eurogroup, but it wasn’t to be. The Eurozone and IMF rejected the latest Greek proposal and are demanding several reforms which would negate Tsipras’ pre-election promises.VIEW FULL ARTICLE
Posted in Daily Market News on Jun 25 2015 by Adrian Jacob