Greek Prime Minister resigns and calls snap elections

Friday, August 21, 2015

Greek uncertainty continues to dominate the European equity markets, raising renewed concerns regarding the country’s economic stability. Last night, the Greek Prime Minister Alexis Tsipras announced his resignation, showing the way for possible early elections on 20th September 2015. Due to recent political conditions, there has been a rebellion within the Syriza party during the last few months, thus Tsipras effectively lost his parliamentary majority. Consequently, Tsipras confirmed recent rumours regarding snap elections in Greece, however, the euro rallied towards 1.13 against the USD this morning.

EURUSD rallies towards 1.13

EUR Curncy (Euro Spot )  Daily 21 2015-08-21 08-46-56

European equity markets extended losses in early trade this morning as Greek uncertainty and Chinese slowdown weigh on market sentiment. The DAX index dragged the European equities lower after retreating over 1.4% this morning, while the CAC, IBEX and London equity benchmark indices declined between 0.8% and 1.1%. Furthermore, Germany’s GfK consumer confidence fell to 9.9 in September from 10.1 in August, missing analysts’ expectations. However, the country’s Markit manufacturing PMI increased to 53.2 in August, beating estimates of 51.6.    

The strong downside momentum continues in the Asian equity markets. Caixin Manufacturing PMI declined to 47.1 in August (preliminary), missing analysts' expectations of 48.2 and dropping to the lowest level in more than six years. The Hang Seng index dropped over 400 points (nearly 2%) overnight, falling for sixth consecutive session and loosing over 2,000 points within a week’s trading. Furthermore, the Nikkei index plunged nearly 600 points (3%) towards 19,400, breaching below the key level of 20,000. The Shanghai Composite Index retreated sharply over 4.2% towards 3,500 following a round of strong sell-off across the Asian equity markets.

The USD index has retreated for a third consecutive session today, with the USD slipping against G10 majors including EUR, JPY and CHF. On the other hand, gold rallied above $1155/ounce acting as safe haven following the recent gloomy macroeconomic picture in China and renewed uncertainty in Eurozone. Today, market participants will be keeping an eye on the release of the US Markit manufacturing PMI data for August (preliminary) as well as the Eurozone’s consumer confidence and the UK’s PSNCR (public sector net cash requirements) data.

XAU- Gold Spot

XAU Curncy (Gold Spot   $_Oz )  D 2015-08-21 08-45-46


Events for today: 




GfK Consumer Confidence








Consumer Confidence




Markit Manufacturing PMI

All times UK Local Time

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