FTSE higher ahead of Greek debt repayment

In mid-morning trading the FTSE 100 is in positive territory, while Greece prepares to make good on its promise to the International Monetary Fund.

Canary Wharf
Source: Bloomberg

Greece has reached yet another crunch day in its troubled financial history. Athens has vowed to repay the IMF today and the market is optimistic the agreement will be honoured. Greece still has a long way to go, but this repayment would begin to repair the country’s poor relationship the rest of the eurozone.

Traders are more than aware Greece’s economy is being crushed under the weight of its own debt, but as long as Athens appears willing to play ball with the European Central Bank then equity markets will keeping edging higher.

We are expecting the Dow Jones to open 50 points lower, at 17,850, on the back of the Federal Reserve minutes which revealed the US central bank is very much divided over when it will increase interest rates. The division among Fed members alone is enough to spook the markets into thinking an interest rate hike could happen sooner than anticipated.

Alcoa kicked off reporting season last night after closing bell. The headline figures of business were strong, but its subdued outlook for the aluminium market sent the stock lower in after-hours trading.

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.