Greece to intensify talks with its creditors - The euro slides lower

Thursday, June 11, 2015

There is increasing optimism across the European equity markets this morning following small improvements regarding the Greek debt issues and the looming deadlines. Following the last meeting between the German, French and the Greek authorities, there are fresh rumours that German Chancellor Angela Merkel considers helping Greece with a deal as both sides firm up their negotiating positions. European equities edged higher this morning with the CAC, DAX and IBEX indices posting modest gains between 0.2% and 0.4%.  

Greece's Total Deposits index

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

Greece's Deposits Households and Businesses Y/Y

GDEPBHYY Index (Greece Deposits  2015-06-11 09-04-00

Standard and Poor’s downgraded Greece’s credit rating by one notch to CCC from CCC+, which is considered as a speculative grade. According to the credit rating agency, it is estimated that Greece will default on its debts within a year due to the absence of any promising deal with its creditors. The euro came under renewed pressure and fell towards 1.1250 in early trade.

EURUSD retreats towards 1.1250

EUR Curncy (Euro Spot )  Daily 13 2015-06-11 08-59-28

We received mixed Chinese economic data overnight. China’s property development investment surged 5.1% during the period of Jan-May 2015, but new property construction fell sharply by 16% during the same period. Retail sales rose 10.1% y/y in May in line with expectations and industrial production increased 6.1% y/y in May against analysts’ estimates of 6.0%. Furthermore, fixed-asset investments slowed suggesting that China’s property development market has yet to recover. However, the Hang Seng index reversed yesterday’s losses and edged higher 0.7% towards 26,870. In Japan, the Nikkei index rallied over 300 points (+1.70%) towards 20,400.  

The USD index bucked the recent downtrend and climbed higher this morning following three consecutive sessions of sharp losses. The USD index has rallied above 95.0 against a basket of currencies in early trade adding pressure to most commodity prices.

Events for today:

0001

UK

May

RICS House Prices

0630

CN

May

Retail Sales

0630

CN

May

Industrial Production

1330

US

May

Retail Sales

1330

US

May

Import Price Index

1330

US

w/e

Jobless Claims

1530

US

w/e

EIA Nat Gas

1500

US

Apr

Business Inventories

All times UK Local Time

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