Eurozone

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European markets were under pressure this morning, as investors paused for breath ahead of a Federal Reserve meeting. The pan-European Stoxx 600 edged down by around 0.1% during mid-morning deals, with most sectors in negative territory and major bourses pointing in opposite territories. Europe's food and beverages sector slipped around 0.8% this morning after a Mexican bottler and retailer announced it had sold a stake in the world's second-largest brewer. Fomento…

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European equities opened higher after fresh record peaks from their US counterparts, but have pared initial gains, with both the FTSE and the DAX now treading water marginally above parity. As such, core EU debt has pushed ahead, led by German paper, with another record low for the Schatz and the 10-year yield at its lowest since early January. This despite firm IFO numbers, with all components topping expectations while pan-Eurozone CPI matched expectations. An underwhelming German July 204…

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European equities initially chased their US and Asian counterparts higher but have pared back some gains. The FTSE is leading its German counterpart, benefiting from the strong performance in the materials sector after China’s strong January trade report overnight. Elsewhere, oil prices have rallied in the wake of the IEA monthly report, in which they raised their global oil demand and highlighted that OPEC made production cuts in January equal to 90% of the agreed volumes. In fixed, c…

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UK Chancellor of the Exchequer, George Osborne made his first statement since the UK’s EU referendum this morning in a bid to stabilise markets. He stressed that the UK government is “ready to deal with the consequences” and that the UK economy is strong. Despite these reassuring words, he also heeded that there will need to be “a period of adjustment” and that “there is going to be an impact on public finances”, although any new budget would b…

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And so it's begun......4 months of constant debate on whether or not the UK should stay or leave the EU. Even though the date has only been set now for less than a week, we have already seen a massive impact on the value of Sterling against all of it's major trading peers. There are very few opinions to suggest that this is not set to continue as the uncertainty builds towards the 23rd June 2016 day of destiny. This morning saw cable duck below the 1.39 handle, curr…

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After a marathon 17 hour session of negotiations, Greece has finally reached a deal with its creditors; here’s what we know so far: *The deal will unlock €82-86bn of funds for Greece - that's enough to keep it going for another three years *There will be no Grexit - European Commission president Jean-Claude Juncker made that much clear *Greece will have to transfer €50bn of assets to a new fund, although it'll be based in Athens, rather than Luxembou…

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The man who shocked us all last week calling the surprise Greek Referendum, the then Greek Finance Minister Yanis Varoufakis' promptly resigned this morning despite the vote coming in as a resounding ‘No’ to accepting their creditors’ reform proposals. He actually initially announced that he would only resign should the Greek public vote ‘Yes’ thus the result and his departure leave analysts and everyone else alike even more ‘in the dark’ a…

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The March Markit/CIPS UK Manufacturing PMI reading was an 8 month high, as growth of production and new orders accelerated. The seasonally adjusted reading increased from February’s 54.0 to 54.4, matching analysts’ estimates. The report from Markit highlighted that the input costs and selling prices had both, which is to be expected with zero inflation, and oil prices significantly. The 54.4 figure is well above the 50.0, which signifies expansion, carrying on from yesterda…

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The fear of Greece leaving the single currency (Grexit) has been a recurring theme since the collapse of Lehman Brothers. The country has only remained within the Eurozone via multiple bailouts from the IMF, otherwise the country would have defaulted on its commitments and been forced from the currency union. At the latest election, the citizens of Greece voted for the anti-austerity Syriza Party which are playing hard ball with Brussels as the country verges on bankruptcy. The leader…

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The situation in Greece continues to dominate the markets and news flow. The recent election of the anti-austerity Syriza party has led to uncertainty as to whether Greece will leave the single currency. Alexis Tsipras the new PM, is locked in crucial talks to negotiate funds to ensure that the country doesn’t default on its commitments. With only two weeks of leadership, the moves by Tsipras are radical, and could have catastrophic repercussions. An exit from the Eurozone would…

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The Greek people elected a new government to power on the 25th January; Syriza are an anti-austerity party led by Alexis Tsipras. They were elected as the people have suffered through the stringent austerity measures dictated under international bailout agreements. Without an end insight and significant economic improvement the Greek people have voted for change. Greece’s financial stability and future EU membership is in question, as Tsipras attempts to negotiate alternatives,…

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Wednesday 1st October saw European equities moving sideways while the Euro sells off sharply as a result of yet weaker macro data highlighting further growth challenges in the Eurozone, a point the ECB will more than likely address at its meeting tomorrow. European Manufacturing PMI slipped to 50.3 compared to a previous estimate of 50.5 creating worrying signs for the region’s Manufacturing Sector as orders appear to be diminishing for the first time since June 2013 leading to m…

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The latest rate decision from the European Central Bank will be announced today at 12:45 GMT. This is the most eagerly awaited rate decision, certainly for quite a few months, possibly ever, especially after President Mario Draghi hinted in their meeting last month that they would act today. Many economists are expecting an unveiling of a package of measures but there are some discrepancies over the exact ones to be used. Since the May meeting, pressure has only increased on President…

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The first trading day of September and the final quarter of 2013 begin. The 5 year anniversary of collapse of investment bank Lehman Brothers is a few days away, which was one of the major casualties of the credit crunch, which has driven major economies into recession and the Eurozone to the brink of collapse. The week begins with a raft of countries releasing their manufacturing data. It began with China, as a major consumer and producer; the slowdown has been a significant concern t…

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