European equity markets rebounded from earlier losses and climbed higher in the afternoon session. The CAC and DAX indices edged higher today, while the IBEX and London equity benchmark indices remained under pressure and traded in negative territory. Concerns surrounding the Greek debt issues continue to dominate the markets while the Athens Stock Exchange plunged for third consecutive session today (-4.70%) to retest the 700.00 level.
The Greek Prime Minister Alexis Tsipras reported today that “The mandate we have got from the Greek people is to end austerity policy.” "In order to achieve that, we have to seek a deal which will spread the burden evenly and which will not hurt wage earners and pensioners".
The euro fluctuated strongly in today’s session. The European currency initially climbed higher and tested a high at 1.1330 but gave back earlier gains and hovered around 1.1220 against the US dollar. On the macroeconomic front, Eurozone’s unemployment was reported at 0.1% q/q in Q1 2015, while its y/y figure dropped to 0.8% from 0.9% in Q1 2014. However, the ZEW survey showed current situation declined to 62.9 in June compared to 65.7 in May and expectation of economic growth fell to 53.7 in June from 61.2 previously.
In the US, housing starts declined sharply 11.1% in May, missing analysts’ expectations of a 4.0% drop. However, building permits rose unexpectedly 11.8% during the same period versus estimates of a 3.5% decline.
The USD index held around 95.0 against a basket of currencies and weighed on base and precious metal prices. Aluminium fell over 1% to retest $1700 and copper retreated towards $5750. Lead, nickel, tin and zinc also remained under pressure after trading in negative territory today. In precious metals, gold failed to rebound and extended losses today towards $1170/ounce while silver followed the downtrend and breached below $16.00.