Your Greek Overdraft Has Been Extended
There was good news and bad news for Greece yesterday, but we were still left with a bit of a “where do we go from here?” feeling. First, the bad news. Greece had appealed for the European Financial Stability Facility to return €1.2bn that it said it had overpaid this month when it had transferred bonds. Unfortunately for them, Eurozone officials disagreed with them.
The good news is short-termist at best. The ECB made more than €1.1bn of extra funding available this month to Greece, raising its limit to just over €71bn. As the PM Tsipras and his colleagues have still to persuade the ECB of their future plans and reforms, this extension of their “overdraft” will at least give the Greeks a bit of breathing space before their next deadline for the reform plan which is on Monday.
The Pound has had bit of a torrid time of late after the 0% inflation figure caused a bit of a stir in the markets. Are we going to increase interest rates? Are we going to go back to cutting them? All seems a bit up in the air at the moment. Today’s notoriously volatile retail sales figures should give us a bit more of an idea where we currently stand. We would expect these to be positive as disposable income should be increasing but as I said, these figure are extremely volatile.
Other than retail sales, we have jobless claims data and services PMI from the US. We also get to hear Mark Carney speak this afternoon.
Finally, Saudi Arabia’s military action in Yemen has created more uncertainty and volatility for markets generally.