Spreadex Market Update
Piece-moving Monday as Eurozone leaders prepare for busy Tuesday
It looks like it is going to be a piece-moving Monday with little concrete news, as the Greek saga’s key players scramble to organise another round of meetings for Tuesday. A Euro Summit has been arranged for tomorrow evening, coming with a ubiquitous, but now Varoufakis-free, Eurogroup get together beforehand. In preparation for this latest meeting of minds, the usual snippets from the usual figures have been dripping into the ears of investors. Germany, through finance ministry spokesman Jaeger, is adamant that a debt cut isn’t on the table, whilst ECB member Nowotny was bearish about a deal arriving in the next few days. The central bank, meanwhile, is still trying to decide what to do about the sickly Greek banks.
News from Greece, meanwhile, has been less forthcoming. Euclid Tsakalotos, who has already replaced Varoufakis in certain negotiating duties over the past few months, is the front-runner to take over the now-empty finance minister post. Tsakalotos is a more stable figure than Varoufakis, and his (relatively) moderate views could help ease a deal into existence. However, he has also been present at many of the failings of the past few months, so may not be the fresh start Greece’s creditors are looking for. Nevertheless, the Eurozone indices have so far held off from the kind of plunges they are more than capable of as the morning wore on.
The FTSE followed the Eurozone’s lead, holding off the spectre of worsening losses despite the triple threat of Greece, oil and copper. The latter two continued to tumble as the morning went on, both posting around 3% in declines and dragging with them the FTSE’s commodity stocks. The banking sector was in similarly insipid health, and likely will remain so until the ECB announces its plans for the Greek banks.
The US futures moved in the same direction as their European counterparts this Monday, with the dollar’s gains against the pound and the yen contributing to the Dow’s mild losses. This afternoon brings with it the ISM non-manufacturing PMI and the latest test of the rate hike-ability of the current US economic landscape.
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