Spreadex Market Update
Dull déjà vu as Eurozone falls on Greece, US markets down on dollar
There was very little chance of the Eurozone completely reversing its losses this afternoon; however the continued weakness of the euro helped calm some of the region’s more extreme declines as Tuesday continued. Not that this meant there was any more progressed on the dreaded ‘G’ word. There appears to be increasing, if not official, acceptance that the latest proposal submitted by Greece isn’t up to scratch, as if it was ever going to be, despite some mild, if ultimately insufficient, concessions made in regards to primary budget surpluses. The EU/Latin American summit tomorrow will, of course, provide another chance for Tsipras to meet with Merkal and Hollande; yet the chances of progress remain dim. The end of June feels both ominously close and frustratingly far away.
Another piece of US data, another mixed reaction. JOLTS job openings came in higher than expected, but couldn’t help boost an already strong dollar, which had already spent most of the day slowly taking back yesterday’s losses against the pound and the euro. This, of course, wasn’t the best news for the Dow Jones; however, the mild nature of the greenback’s growth left the Dow more lifeless than loss-filled.
And what of the FTSE? The UK index is on track for its fourth day of losses in a row, and its seventh out of the last eight consecutive days of trading. If its losses continue tomorrow, and with the current climate is more than a mere possibility, the FTSE could be pushed to a price not seen since the middle of March; if the situation continues all week, then traders could see levels not hit since back in January. The one saving grace for the index tomorrow will be the merciful return of significant data; manufacturing and industrial production alongside a NIESR GDP estimate may not inspire a huge turnaround, especially looking at analysts’ forecasts, but at least provide the chance of something different.
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