The week ends without an agreement for Greece

Friday, June 26, 2015

Another Euro-group meeting came to an end without reaching a deal yesterday. European Finance Ministers and the Greek government failed for a fourth time in a week to seal an accord. The ongoing uncertainty caused high volatility and dragged global equity markets lower. In the US, the Dow Jones and NASDAQ indices retreated and finished yesterday’s session posting renewed losses between 0.20% and 0.40%. In Asia, the Hang Seng index extended declines over 450 points (-1.65%) and the Nikkei dropped 0.30%. This morning, European equity markets extended losses as the CAC, DAX, IBEX and London equity benchmark indices dropped between 0.6% and 0.8% in early trade.

Greek bailout talks have now been postponed to Saturday. German Chancellor Angela Merkel said “Saturday has taken on a decisive significance, because time is short”. However, she declined to comment on what might happen if another Euro-group meeting fails to reach an agreement over the weekend but said that government leaders would not intervene. Furthermore, European leaders reported that “everything must be done to find a solution on Saturday”. So, “Greece fatigue” continues dominating global equity and commodity markets. The euro is struggling for direction after hovering around 1.12 against the USD this morning.  

Athens Stock Exchange remains under pressure

ASE Index (Athens Stock Exchange 2015-06-26 09-15-09

On the macroeconomic front, Germany’s import price index fell 0.2% m/m in May missing analysts’ expectations of a 0.2% rise. France’s consumer confidence increased to 94.0 in June compared to 93 in May. Market participants will be keeping an eye on the release of the US University of Michigan survey regarding the current conditions, market sentiment and expectations in June. The USD index hovered around 95.20 against a basket of currencies this morning.

Precious metals remain under heavy pressure. Gold plunged for a fifth consecutive session yesterday and ended the day at $1173.17/ounce. Silver retreated sharply this morning to test an early low at $15.55. Platinum and palladium remained in negative territory. The downside momentum continues in the base metal market. Aluminium extended losses towards $1700 and copper hovered around $5770. Lead, nickel and zinc extended declines in early trade this morning.  

XAG- Silver declines towards $15.50

XAG Curncy (Silver Spot  $_Oz )   2015-06-26 09-13-37

Events for today:

0030

JP

May

CPI

1500

US

Jun

Michigan Survey

 

All times UK Local Time

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