Spreadex Market Update
Germany dash Greek proposal hopes
Even though Syriza are slowly disposing of many of their stauncher policies, like refusing to negotiate with the Troika or implementing a ‘no strings attached’ loan extension, and instead are effectively asking for a continuation of the bailout with some adjustments, Germany still aren’t happy. The Greek response has been muted, but determined: accept this deal, or reject it. It looks like Syriza are getting sick of the constant negotiations, and what appears to be Germany’s attempt at breaking the revolutionary spirit that got Syriza elected in the first place.
Unsurprisingly any gains made this morning by the Eurozone indices were decreased as a deal was once more snatched off the table; however the region’s markets began to recover as the dust settled on Germany’s decision. The euro, on the other hand, remains in trouble; chances of a ‘Grexit’ can only have increased after Germany’s move this afternoon, and this has made itself felt on the currency which saw this morning’s gains wiped out against the dollar.
Continued instability in the Eurozone joined by a second day of uninterrupted declines for oil meant that the FTSE struggled to gain any traction as the afternoon trudged on. There was no change in its winners and losers, as Rexam and Rolls-Royce Holdings’ gains were countered by the sustained losses of Centrica, Premier Oil and Tullow Oil. The oil sector’s issues were due to Brent Crude’s slide, with the commodity loitering at $58 per barrel after its $60 support level gave way yesterday evening.
Finally, a new record high for the Dow Jones fell further out of sight as the US markets succumbed to the dour mood that struck investors after Germany’s Greek rejection this afternoon. Despite minor gains made following a better than expected jobless claims figure, the worst Philly Fed manufacturing index number since this time last year exacerbated the bearish trading that had set in after the bell.
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