The G7 leaders agree to phase out fossil fuels

Tuesday, June 09, 2015

The G7 summit took an historic step in order to tackle environmental issues. Global leaders agreed to phase out fossil fuels by cutting greenhouse gas emissions by up to 70% of 2010 levels by 2050. Furthermore, G7 leaders agreed to mobilise $100 bln/year by 2020 in order to assist poor nations to face climate change.

Economic conditions in Greece remain very fragile. German Chancellor Angela Merkel asked for urgent action from the Greek government yesterday after the US President Barack Obama reported his concerns over the standoff over financial aid during the G7 summit. Jean-Claude Junker said that Greece is not doing “enough” to ensure its position within the Eurozone. The euro initially spiked yesterday and hit 1.13. However, this morning the euro retreated towards 1.1250 after heating an early high at 1.1346.

EURUSD

EUR Curncy (Euro Spot )  2015-06-09 08-54-03

The IMF raised Spain’s growth forecast for the second time in three months reporting a 3.1% growth for 2015. The main drive was a result of a reform of the current employment and a more supportive global environment. However, the IBEX index remained under pressure in early trade this morning and hovered around 10,920. 

China’s CPI rose 1.2% y/y in May missing analysts’ expectations of 1.3%. The Hang Seng index extended losses overnight and plunged 1.2% (over 300 points ) to retest 27,000. Japan’s Consumer confidence index fell slightly to 41.4 in Mat from 41.5 in April, missing analysts’ estimates of 41.9. The Nikkei index came under heavy pressure overnight and retreated sharply over 360 points (-1.75%) towards 20,050.

Nikkei index retreats sharply       

NKY Index (Nikkei 225)  Daily 30 2015-06-09 08-54-34

Events for today: 

0001

UK

May

BRC Retail Sales

0245

CN

May

CPI & PPI

0930

UK

Apr

Trade Bal & Non EU

1500

US

Apr

Wholesale Inventories

 

All times UK Local Time

More from: Myrto Sokou