Traders await Greek summit news

In mid-morning trading the FTSE 100 is rallying, up 80 points, as optimism spreads regarding today’s big eurozone summit.

City of London
Source: Bloomberg

After five years, are we finally at make-or-break day for Greece? We have felt the hand of history on our shoulders before in this crisis, but not to this extent. With debt repayments stacking up and political rhetoric running at a high pitch, today feels like it may go down in history as the moment when Greece is either saved or begins to depart from the eurozone.

Comments from Jean-Claude Juncker that Greece’s new proposals are a ‘basis for progress’ were enough to ignite a rally across eurozone markets, with the FTSE 100 joining in too. Even after all these years, a last-minute deal that, in reality, merely kicks the problems further into the year still has the power to inspire an equity  market rally.

Sky shares are in the ascendant this morning, thanks to reports that the media giant is now a bid target, but with the Murdochs determined to exact a hefty premium from any potential bidders, it looks like this M&A story is off the cards for the time being. The news has been enough to put life back into the rally in Sky shares, up 20% for the year so far.

Although we have existing home sales and the Chicago Fed index on the radar today, US markets will still be keeping most of their attention on Greece. With Fed worries temporarily banished, investors would now love to see a resolution, even if only temporary, of the problems afflicting the eurozone.

Thus, like their European counterparts, US markets will be keeping a close eye on any headline flashes emerging from today’s crucial meeting. Ahead of the open, we expect the Dow to start 140 points higher, at 18,155. 

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