Spreadex Market Update
Greek optimism withstands tempered comments from key creditors
Reports suggest that the latest Greek proposal does indeed include pension and VAT reforms; the former would see a ‘gradual’ increase of the retirement age to 67, whilst the latter would see more items taxed at the top VAT rate. However, the creditor soundbite remains that this is a good basis for discussion, not the deal-unlocking bridge the Greeks desperately need.
Key figures have been keen to take the pressure off of this Monday’s summit, with Juncker stating he 'doesn't know if we'll get a deal today', whilst Merkel and Hollande both reiterated that there are still a few days, and another summit, following this evening’s meeting for a deal to be found. Yet these mild warnings failed to change the tone of trading, with investors acting as if a deal is signed, sealed and delivered; whilst this is all well and good, it does leave room for a sharp drop if investors put too much stock in a deal arriving at some point today.
This robust positivity showed no signs of slowing down in the UK, as the FTSE held onto its one week highs; of course, the UK index remains on the leash of the Eurozone, so any change in atmosphere from Brussels could have steep ramifications for the FTSE.
With the focus firmly on Brussels-based Greek business, the US futures are following the European lead; this has left the Dow Jones up by nearly a percent, and close to last Thursday’s highs, ahead of the open. Unlike Europe, the US actually has some data to deal with, however limited, with the announcement of the latest existing home sales. Analysts are expecting a recovery from last month’s slip, something that could either boost the Dow or help the dollar, depending on how much the interest rate debate is on investors’ minds.
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.
