Greece going backwards?

Yesterday’s markets

26th June 2015

  • SNB Chairman Jordan Speaks
  • Eurogroup Meetings
  • EU Economic Summit
  • US Unemployment Claims: 271k
  • US Core Personal Spending m/m: 0.9%

The Greek saga continues to dominate headlines adding twists and turns to the story on a daily basis. Greece’s three creditor institutions unanimously agreed on a set of documents that were sent to Euro area finance chiefs to review as the basis for a deal, however Greece never actually accepted them. German Finance Minister Wolfgang Schaeuble claimed that the Greeks rather than making progress have moved “backwards”. The 30th of June deadline is fast approaching and Greece now have the weekend to come up with an agreement and obtain approval by the Greek parliament and other Eurozone governments including the German Bundestag for repayment of €1.6bn to the IMF.

Household spending added to the bullish data trend from the US of late. Household spending climbed in May by the most in almost six years, boosted by gains in incomes as the labour market continues to strengthen. Personal spending exceeded expectations of 0.7% and posted a strong 0.9%, whilst last month’s figures were revised up. Consumers are finally spending their savings from the lower oil prices earlier this year, in addition increases in employment may also be increasing consumer confidence.

Today’s markets

25th June 2015

  • EU Economic Summit
  • Revised UoM Consumer Sentiment
  • BoE Gov Carney Speaks

With month end fast approaching it is important to note that it is also the end of the quarter which could result in some erratic price action. Today is the only real interest to the UK calendar this week as BOE Gov. Carney participates in a panel discussion at the 2015 Conference on Inclusive Capitalism. His views on future monetary policy maybe questioned and will no doubt be under scrutiny.