Greece is running out of time- Creditors say

Friday, June 12, 2015

Asian equity markets continued their strong upside momentum overnight. The Hang Seng index rallied nearly 400 points (+1.4%) towards 27,300, while the Nikkei index edged higher and breached above 20,400. Japan’s industrial production rose 1.2% m/m in April compared to 1.0% in March but capacity utilisation fell -0.4% m/m in April.

There is ongoing uncertainty surrounding the Greek debt issues and the continuous negotiations with Greece’s creditors. The last message that was sent to the Greek Prime Minister Alexis Tsipras last night was “the time for compromise is over”. European Council President, Donald Tusk, reported that “we need decisions, not negotiations now. It is my opinion that the Greek government has to be, I think, more realistic”. Yesterday, the IMF withdrew its negotiating team at the last meeting.

Greece's total deposits

TODETOGR Index (Total Deposits G 2015-06-11 09-09-29

In the UK, Chancellor George Osborne plans to start selling the state’s stake in RBS of GBP32 bln. According to the FT, he admitted that he would take a political hit for selling the bank for less than the cost of RBS’s bailout in 2008.    

The USD index rallied higher and held above 95.0 against a basket of currencies. Most commodity prices remain in negative territory as the strong USD currently adds further pressure.

USD index

DXY Curncy (DOLLAR INDEX SPOT)   2015-06-12 09-08-34

 

Events for today:

0930

UK

May

Construction Output

1000

EZ

May

Industrial Production

1330

US

May

PPI Final Demand

1500

US

Jun

Michigan Survey

 

 

 

 

All times UK Local Time

 

Topics: USD, Europe, EUR, UK, Greece, RBS
More from: Myrto Sokou