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. 

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.