Daily Market Review 14 of June

Markets remained nervous ahead of Sunday’s Greek election. There was little fresh news from Europe yesterday but we did saw yet another disappointing numbers from the US retail sales but a it looks as if only the Greece election outcome influence the markets at the moment. Europe equities markets were mixed in choppy trade whereas the US mainly lost ground in the last 2 hours of trading.


We started today s session with yet another decline in equities after Moody’s cut Spain’s sovereign credit rating 3-levels to Baa3, the lowest prime grade, and warned that further downgrades could be seen in the coming months.


Investors remained cautious as Italy was preparing to sell up to EUR4.5 billion in long term bonds later in the day, amid growing fears the country will be the next euro zone member to require a bailout. Rome saw borrowing costs surge to the highest level since December at an auction of 12-month government bonds on Wednesday


Also coming out today; Euro zone docket includes the ECB monthly report and inflation figures in the pan-European composite. Across the pond, CPI figures, current account and the weekly labor market report are also due later on.


EUR/USD The euro dollar closed higher for its second consecutive day yesterday, finishing the US session at 1.2555 after trading as high as $1.26 earlier on. A combination of short-covering ahead of this weekend’s Greek elections, speculation officials may consider relaxing Greece’s austerity program post-election and weak US retail sales fuelled the gains. Looking ahead today, the ECB are scheduled to release its monthly bulletin ahead of European and US inflation data.