Greece remains front and centre to start the week with tons of rumours and denials floating around today’s EU summit. Even though a deal getting done today looks unlikely, it appears the proposals submitted by Greece were enough to keep the doors open, with more talks proposed for later in the week.
With Grexit apparently having been postponed for now (how long remains to be seen) stocks are on the rebound to start the week with major continental indices up around 1.5-2.5% and US indices up 0.5-1.0%.
Signs of progress have defensive plays back on their heels today reversing some of last week’s gains as capital flows back out into other markets. Gold has dropped around $10.00/oz while JPY and UK markets (both FTSE
and GBP) are also underperforming a bit.
EUR is trading flat against USD today indicating that although there has been some encouragement and cautious optimism, there also remains some healthy scepticism on whether a deal can get done or not.
NOK and CAD are the top performing currencies today with crude oil on the rise again, although WTI remains below $60.00 and Brent remains well short of $65.00. NZD has been a bit soft following more soft data out of New Zealand.
As the day progresses, we may also see some positioning ahead of tonight’s Flash PMI reports from around the world, the first indication of how things have been going in June so far.
Apple Apple Music to pay artists during a three month trial period of the service following publication of an open letter in opposition from Taylor Swift.
Significant announcements released overnight include:
NZ consumer confidence 113.0 vs previous 117.4
Upcoming significant announcements include:
9:45 am EDT ECB weekly QE update
10:00 am EDT US Existing home sales street 5.26M
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