Wednesday, June 3, 2015

Bags positive on hopes of a recovery in Greece – The Republic

MILAN – From the absence of a clear plan, the plethora of reform proposals: on the negotiating table between Athens and Brussels Group (the former troika of EU, ECB and IMF) are over two opposing programs to overcome the impasse in which it’s over Greece. On the one hand, the Prime Minister Alexis Tsipras has forwarded the proposals of the government of Syriza to unlock aid; a handbook still considered too broad by international creditors. On the other hand, it expects the counter-ultimatum which could be the last chance for Athens to unlock the 7.2 billion euro of aid. Creditors would be likely to accept the idea that the budget surplus this year is below 1%, launching a first sign of possible compromise as Athens requested 0.8%. Exchanges have lived on the numerous meetings of the day, both technically and politically, although from Brussels have made clear that “the solution is not provided in the evening.” The agreement is supported by the Minister Pier Carlo Padoan and President Francois Hollande, however, that an agreement for the ECB governor, Mario Draghi, “to be strong”. Remains skepticism Hawk Wolfgang Schaeuble, for which the Greek proposals justify pessimism on achieving a permanent solution.

The leading greek must play not only on the international front, but also on the inside: the assumption that a Any agreement will be submitted to a referendum is losing share, but the frond extreme party – one that does not want in any way to yield to the dictates of Berlin or hawks EU – is already on a war footing and talk of possible elections. All this, when there are few hours (deadline June 5) to repay 305 million to the IMF (under a month that accounts for 1.6 billion of maturing loans) will be difficult to find the resources and the horizon ‘ possibility of a block to c / c it seems increasingly likely.

In this context, the markets closed slightly up: Milan little move has gained 0.14%, after a morning uncertain, London 0.32%, Paris or 0.59% and Frankfurt 0 , 8%. Athens closed strong with a jump of 4%. Wall Street is strengthened after the opening: at the close of the European markets, the Dow Jones gained 0.8%, the S & amp; P 500 grew by 0.5% and the Nasdaq salt 0 , 7%. On the bond market, however, the growth of inflation and the EU fear for the fate of Athens have put pressure on government bonds, with the yield on BTPs and Bonos at the highest levels by the end of 2014. spread between ten-year Italian and German contracts below 130 basis points, but the yield on ten-year tricolor rises to 2.16% after the board of the ECB, which raised inflation estimates. The reduction of the differential is thus due to the rise in the context of all EU yields on government bonds, including those in Germany. L ‘ closed up sharply to $ 1.1275, up from more than two weeks and 140 yen (currencies). Among individual stocks in Milan, we note the debut of the coffee pot in the group Zanetti, who closed with a gain of 0.26%.

The day is also rich from the macroeconomic point of view, after a start Week weak. The SME services of Italy down from 53.1 to 52.5 points in May: the indicator remains above the expansion threshold (50 points), but slowing. The composite index, which monitors the activities of the services and manufacturing sectors, switch to 53.7, from 53.9 in April. Services in contraction in Germany (from 54 to 53 points), while France , the indicator reached the highest level in three months and for the services component (52, 8 points) for both the composite (52 points). Finally, the data services Markit ‘s Eurozone down to 53.8 in May from 54.1 in April, the production Composite ranks of 53.6, again down from the 53.9 in April.

Italy, unemployment shows a marked decline to 12.4% after rising in March. In Frankfurt, it meets the Governing Council of the ECB does not touch rates, while in Paris the OECD promotes the recovery of Italy and the area with the single currency, but sees slowdown in the US. Again in the Eurozone, the jobless rate down to 11.1% in April, while retail trade grew by 0.7%. In the US, the private sector in May 201mila jobs created, just below expectations. The ISM index for the services sector fell to 55.7 points in May from 57.8 points in April. Analysts had expected a drop lower, at an altitude of 57 points.

The services PMI indices are published in the morning in China and Japan. In the case of Tokyo, the indicator rose slightly in May to 51.5 from 51.3 in April, while the composite index rose to 51.6 from 50.7. In the Chinese case, the services PMI rose to 53.5 in May from 52.9 in April, the highest level in eight months, while the composite rose to 51.2 from 51.3 in April.

The Nikkei index of Tokyo Stock Exchange closed down today because of the dollar for the second consecutive session, after having scored a record series. The index has left on the ground 0.34% (-69.68 points) to 20,473.51 points. The Topix index lost 0.25% (-4.22 points) to 1,669.99 points. Yesterday evening, at the end indexes Wall Street have turned red after the factory orders have returned to fall in April for the eighth month in nine. The focus today will be on the beige book of the Federal Reserve, with the picture of US economic strength. The Dow Jones has sold 0.16%, the S & amp; P 500 lost 0.10%, the Nasdaq has left on the ground for 0.13%.

For the raw materials, finally, oil opens down to New York, where prices lost 1.63% to $ 60.20 per barrel. L ‘ Gold is rising on international markets at around $ 1,190 an ounce marking an increase of 0.3% compared to the day before.

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