Spreadex Market Update
Promise of positive Greek parliament progress, whilst Yellen hawkish(ish) in testimony
Whilst the resignation of both the deputy Greek finance minister and finance ministry secretary general hardly points to a unified Syriza party, Tsipras is still expected to be able to pass the Greek deal in parliament this evening despite the very vocal opponents in his government. The finance bridge, meanwhile, still hasn’t been confirm despite the looming ECB repayment next Monday; incidentally, the €7 billion EFSM bridge that has been the most persistently mentioned source of funding wouldn’t actually cover the €12 billion in payments Greece has in the new couple of months. Regardless, the promise of positive progress in the Greek parliament has left the DAX and CAC slightly higher than they were at the start of the day, if not by much.
An afternoon of strong US data, including PPI, Empire State manufacturing, capacity utilization and industrial production, the scene was set for Janet Yellen’s testimony in front of the House Financial Services Committee. In her prepared speech, Yellen pointed to the continual issues in regards to labour market contentions, the underperformance of inflation in relation to its long-term targets and the still-present threats of Greece and China to the global economic landscape as the factors involved in the central bank’s decision.
However, the Fed chair importantly reiterated that rates should rise in 2015 if inflation and labour market conditions improve; much of the same rhetoric that has been present for the past few months, then, and little in the way of the clarity investors are aching for. Yet it also leaves a potential lift-off in September (or December) on the cards, and was enough to give the dollar a little bump (if not a particularly impressive one), leaving the Dow Jones fairly flat in the process.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.spreadex.com.
