The uncertainty surrounding Greece’s future in the Euro bloc continues to grapple investors, with the Euro suffering losses against the majors. Greece is facing a political and financial crisis after it announced that it will hold a referendum this weekend to decide on whether to accept the rescue funding offered by its international creditors.On the macroeconomic front, data released this morning has revealed that Britain’s mortgage approvals fell unexpectedly for May and consumer credit grew at a slower than anticipated pace for the same month. Though developments in Greece are likely to influence market sentiment going forward, today’s Euro zone indices, German consumer price inflation and US pending home sales data will also attract modest market attention.
Prime Minister, David Cameron yesterday secured an agreement for technical talks between the UK and European Union officials over the next six months on reforms and fundamental changes, ahead of a referendum to be held by the end of the 2017. In the absence of any significant domestic economic indicators today, a speech by the BoE Governor Mark Carney will be in the limelight.Meanwhile, Greece is heading closer to defaulting on its payment to the IMF next week after yesterday’s meeting of Euro group officials ended again with no agreement. The creditors have called for a weekend meeting to avert a debt default. The Reuters/Michigan consumer sentiment data will attract some market attention in the US.
Later today, the CBI’s distributive trade survey will provide early cues on direction of retail sales for June. Despite the elevated consumer confidence and rising wage growth in the nation, markets anticipate the balance to decline for June following the strong reading in the prior month. Across the Atlantic, personal income and spending data for May and the flash reading of Markit’s PMI for the services sector in June, due later today, will provide fresh guidance on the growth prospects in the economy for the second quarter.Meanwhile in Europe, the GfK survey on consumer sentiment highlighted the adverse impact the Greek crisis was having on consumers in the region. After the meeting of Euro zone finance ministers last night ended with no agreement, talks have resumed again today as a Greek default lurches closer.