As the afternoon moves to a close, the FTSE 100 is 45 points lower, with more sustained losses in the rest of Europe and a weak open in the US that threatens to undo all of yesterday’s good work. It appears the absence of Yanis Varoufakis has not reduced Greece’s ability to annoy its creditors. Turning up in Brussels without fresh proposals and instead promising them tomorrow is perhaps the best way to ensure that any new ideas get a cold reception. If anything sends a message that Alexis Tsipras is not serious about negotiations, then this is it. The market’s disappointment was almost palpable, much like that of a parent confronting an unruly child, and equity markets rapidly shed the ground that they had gained yesterday. In all seriousness, Greece’s government now appears intent on leaving, and if they carry on in this fashion, the rest of the eurozone will be happy to show them the door.
The US dollar remains the undoubted king at present, as safe haven demand, coupled with Fed policy expectations, drives the buying of the greenback. The move is making itself felt in oil markets once again, where resurgent supply levels have pulled the rug out from underneath the oil price. This is carrying across to USD/CAD, with the Loonie now in full retreat and the pair registering fresh multi-month highs this afternoon. In London miners are feeling the pinch too, occupying most of the spaces at the bottom of the leaderboard, taking the heat off M&S shares even as the company’s directors feel the force of shareholder unhappiness at the AGM.
Recommended Content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.