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Daily Market Analysis – 26th June, 2015
By FxGrow Research & Analysis Team
Greek crisis extends into weekend before Sunday's Final Deadline
Greece was unable to close a deal with its European creditors on Thursday, as the crisis extends into weekend before the final deadline on Sunday to avoid a default.
Euro zone finance ministers finished their third round of meeting in a week without an agreement as Greek Prime Minister Alexis Tsipras tries to convince its European creditors and secure the much needed bailout funds for his country.
"The institutions informed us that on a number of issues there is still a wide gap with the Greek authorities. In the meantime, the door is still open for the Greek authorities to accept the proposals tabled by the institutions" - Euro group chairman Jeroen Dijsselbloem.
"The climate is that either by Saturday Greece accepts or on Saturday there will be a discussion about Plan B" - Euro zone official.
"The institutions are going to look again at the two documents - our documents and their own. There will be discussions with the Greek government and we'll continue until we find a solution” - Greek Finance Minister Yanis Varoufakis.
"Certain institutions insist in not accepting equivalent measures suggested by the Greek government. The non-acceptance of equivalent measures has never happened before. Neither in Ireland nor in Portugal." - Greek Prime Minister Alexis Tsipras.
Greek's International creditors have rejected the government's plan to end its financial crisis, but they have submitted counterproposals. Time is running out and strong measures would be needed to avoid a default and prevent Greek banks from collapsing thereby limiting any market contagion to other euro area countries.
The new proposal submitted by Greece aims to make €8bn in savings, by new taxes on the wealthy and businesses, VAT increases and a cut in defense spending. But in counter-proposals its European creditors have called for further measures on pensions, higher value added tax for restaurants, and for defense expenditure to be slashed by € 400 million.
"I want to stress that it's not just a matter of Greece, it's a matter of the future of Europe. What's happening now in Greece is going to happen tomorrow in other countries" - Dimmitris Kammenos.
“Without a substantial form of debt relief, which looks unlikely in an initial agreement, Greece’s debt ratio will remain unsustainably high and the crisis will continue.” - Jonathan Loynes, Capital Economics.
In Germany GfK consumer sentiment index declined to 10.1 going into July following a decline in German business morale in June. GfK said that Greece's default and exit from the currency bloc, which had seemed a remote possibility, now appears to be quite realistic.
New Zealand logged a Trade surplus of NZ$350 million for the month of May far surpassing analysts’ expectations. The Reserve Bank of New Zealand is unhappy with New Zealand Dollar' strength as the Kiwi Dollar slid to the lowest level in five years versus the US Dollar.
In UK Retail sales growth slowed for the month of June. The British retail sales balance dropped to +29 this month, down from +51 in May.
In US Initial Jobless Claims rose to 271K last week according to the US Department of Labor.
Crude Oil is trading lower at $59.58 as trader’s eye Greece debt talks.
Gold is trading lower in the Europe at 1173.53, while Silver is weak at 15.83
26th June 2015 – 09:39hrs GMT
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
By FxGrow Research & Analysis Team
Greek crisis extends into weekend before Sunday's Final Deadline
Greece was unable to close a deal with its European creditors on Thursday, as the crisis extends into weekend before the final deadline on Sunday to avoid a default.
Euro zone finance ministers finished their third round of meeting in a week without an agreement as Greek Prime Minister Alexis Tsipras tries to convince its European creditors and secure the much needed bailout funds for his country.
"The institutions informed us that on a number of issues there is still a wide gap with the Greek authorities. In the meantime, the door is still open for the Greek authorities to accept the proposals tabled by the institutions" - Euro group chairman Jeroen Dijsselbloem.
"The climate is that either by Saturday Greece accepts or on Saturday there will be a discussion about Plan B" - Euro zone official.
"The institutions are going to look again at the two documents - our documents and their own. There will be discussions with the Greek government and we'll continue until we find a solution” - Greek Finance Minister Yanis Varoufakis.
"Certain institutions insist in not accepting equivalent measures suggested by the Greek government. The non-acceptance of equivalent measures has never happened before. Neither in Ireland nor in Portugal." - Greek Prime Minister Alexis Tsipras.
Greek's International creditors have rejected the government's plan to end its financial crisis, but they have submitted counterproposals. Time is running out and strong measures would be needed to avoid a default and prevent Greek banks from collapsing thereby limiting any market contagion to other euro area countries.
The new proposal submitted by Greece aims to make €8bn in savings, by new taxes on the wealthy and businesses, VAT increases and a cut in defense spending. But in counter-proposals its European creditors have called for further measures on pensions, higher value added tax for restaurants, and for defense expenditure to be slashed by € 400 million.
"I want to stress that it's not just a matter of Greece, it's a matter of the future of Europe. What's happening now in Greece is going to happen tomorrow in other countries" - Dimmitris Kammenos.
“Without a substantial form of debt relief, which looks unlikely in an initial agreement, Greece’s debt ratio will remain unsustainably high and the crisis will continue.” - Jonathan Loynes, Capital Economics.
In Germany GfK consumer sentiment index declined to 10.1 going into July following a decline in German business morale in June. GfK said that Greece's default and exit from the currency bloc, which had seemed a remote possibility, now appears to be quite realistic.
New Zealand logged a Trade surplus of NZ$350 million for the month of May far surpassing analysts’ expectations. The Reserve Bank of New Zealand is unhappy with New Zealand Dollar' strength as the Kiwi Dollar slid to the lowest level in five years versus the US Dollar.
In UK Retail sales growth slowed for the month of June. The British retail sales balance dropped to +29 this month, down from +51 in May.
In US Initial Jobless Claims rose to 271K last week according to the US Department of Labor.
Crude Oil is trading lower at $59.58 as trader’s eye Greece debt talks.
Gold is trading lower in the Europe at 1173.53, while Silver is weak at 15.83
26th June 2015 – 09:39hrs GMT
Note: This analysis is intended to provide general information and does not constitute the provision of INVESTMENT ADVICE. Investors should, before acting on this information, consider the appropriateness of this information having regard to their personal objectives, financial situation or needs. We recommend investors obtain investment advice specific to their situation before making any financial investment decision.
