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Prospect of Greek exit weighs on eurozone

In mid-morning trading the FTSE 100 is down 20 points, at 6815, as Greek exit fears loom over the market. 

Greek flag
Source: Bloomberg

Greece and the European Central Bank are still at loggerheads and the prospect of a Greek exit seems all the more likely. Greece is holding the rest of the eurozone to ransom as it awaits significant debt relief. Traders are not taking any chances and financial stocks are suffering the most as the fear of a full-blown crisis is too much to bear. 

UBS is trading lower as the fallout of Swiss National Bank’s decision to remove the peg against the euro is yet to be fully played out. The investment banking division was the driving force behind UBS’ profits, which helped the bank double its dividend. The strength of the Swiss franc and the passing on of negative interest rates to clients will deter business in the future.

Bellway has got off to a good start this year as the buoyant housing market has seen completions and average selling prices tick higher. The tighter lending policies by banks will benefit Bellway in the long-run as it will circumnavigate the old boom and bust scenario in the property market. 

TUI AG is in the red — the company announced its maiden set of figures after the merger and even though the first-quarter sales were higher, there are some teething problems and the synergies have not been fully realised. 

We are expecting the Dow Jones to open 10 points higher at 17,740, and the announcements from Western Union and Coca-Cola will keep traders' attention as the US reporting season continues at a slower pace. 

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