There is increasing volatility across global markets as we continue to read headlines that time is running out for Greece. Following the latest Eurogroup meeting in Brussels yesterday, the Greek government and its lenders failed again to reach an agreement. The euro came under renewed pressure today and slid lower towards 1.13 against the USD as the Greek economic conditions have deteriorated during last week.
However, with the exception of the DAX index, most European equity markets climbed higher during the last trading session of the week. The CAC, IBEX and London equity benchmark indices edged higher between 0.15% and 0.6%, while the DAX index slid lower by 0.7% towards 11,000.
The USD index rebounded from recent loses and climbed higher above 94.0 against a basket of currencies. The strong USD weighed on most commodity prices. Crude oil prices extended recent declines as the recent tepid oil fundamentals continue to limit any upside potential in the market. Brent front month futures retreated over 2% below $63 per barrel and WTI front month futures dropped over 1.5% below the key support level of $60 per barrel. Base metal prices traded in negative territory posting renewed losses in today’s session. Copper declined over 1.5% towards $5600 and aluminium dropped below $1700.
All eyes are on the emergency EU summit on Monday as Eurozone leaders are looking for a last minute deal with the Greek government.
the key meeting of Eurozone’s finance ministers in Brussels today. The euro rallied over 1.14 against the USD amid hopes that there might be a last minute plan for Greece. The President of the European Council Donald Tusk reported today that "It is time to urgently discuss the situation of Greece at the highest political level".
In the meantime, the Greek Prime Minister Alexis Tsipras has headed to Russia in order to meet Russian President Vladimir Putin.