Another week and the news focus still remains on Greece and whether they will stay or leave the European Union. Reports that a bailout deal had been agreed by all parties was generally celebrated by the markets, however details that the bailout is dependent on Greece undertaking a USD50 Billion Euro asset selloff (airports, seaports and beachside real estate) means that this saga is far from being settled.
Please see the following snapshots of market news today;
**** China ****
• Chinese stockmarket rebounds strongly on rumors the Chinese Government has been involved in buying stocks and commentators suggesting the bottom had been reached
• Morgan Stanley head of emerging markets has predicted China may cause the next world recession, as it continues to slow down
• Chinese Trade data released yesterday reported two way trade falling 6.9% in the first 6 months compared to year prior
**** Greece ****
• Greek Parliament has until Wednesday to pass into law key creditor demands and unlock EUR86bn bailout
• These measures include pension overhauls and sales-tax increases that voters overwhelmingly rejected at last week’s referendum, so the deal represents a humiliating back-down for Prime Minister Tsipras and he faces stiff opposition in his own party ahead of Wednesday’s parliamentary vote
• Prime Minister Tsipras faced mutiny within his own coalition
**** Metal Markets ****
• LME Copper and Lead have slight rises over the last week.
• Market observers link the LME rise to confidence returning to China on the back of the stockmarket bounce
• Ferrous and steel markets have fallen heavily on the back of cheap Chinese billet entering the market
**** Australian Dollar ****
• The dollar trades below 75 cents all prior week
• The Australian dollar is currently trading at 0.7401.