Greece may require third bailout

In mid-morning trading the FTSE 100 is down 60 points as traders are concerned that Greece may need another bailout.

The eurozone may be out of its recession but the single currency area is only as strong as its weakest link, and it looks like the Athens administration may require a third bailout. Angela Merkel must strike a balance between keeping the eurozone on track without alienating the German electorate as she faces re-election next month. The Greek economy is on track for its sixth consecutive contraction and traders are afraid that we are in a constant loop of bailouts.

Chilean copper miner Antofagasta is pulling mining stocks lower after it revealed a more than 30% decline in pre-tax profits. Falling commodity prices and rising costs have been cited as the reason behind the slump in profits. The increased uncertainty surrounding Syria is also playing on investors’ minds, and the price of oil is higher as tension mounts.

In the US, we are expecting the Dow to open 60 points lower at 14,886, as the US will reach its debt ceiling in October. 

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