Greek groundhog day upsets the markets

In mid-morning trading the FTSE 100 is in the red as new fears surrounding Greece weigh on the market.

City of London
Source: Bloomberg

Greece has gotten the better of the markets again, and now the nation is dangerously close to defaulting. A repayment to the IMF is due next week, and the county is already finding it difficult to pay public sector wages and pensions. Greece has been trapped in Groundhog Day since 2010, and the possibility of exiting the eurozone has never really gone away, it has only dropped off the headline for a few months at a time.

Athens can barely keep up with its day-to-day bills, and now that the nation has a series of big repayments due over the summer, the country could reach breaking point. The cracks are already beginning to show within the Syriza party, and if it can’t stay united in the  coming months, the country will be plunged into political turmoil.

Shares in Ryanair are just shy of the all-time high after the airline revealed a 66% rise in full-year earnings. Low oil prices were a contributing factor in the jump in profits, but the company’s new ‘nice guy’ image was the biggest factor behind the rise. Good manners do not cost you anything, whereas bad manners can cost you customers. When you consider Ryanair revealed a drop in profits last year, it makes this jump in earnings all the more impressive.

Cineworld shares are back above £5 in light of the strong trading statement which covered the 19-week period until mid-May. The company is confident it will achieve its end-year target, and the growth in continental Europe is exceeding  that of the UK.

We are expecting the Dow Jones to open 57 points lower, at 18,175, as the US market is taking its cue from Europe. The US market was shut yesterday due to Memorial Day, and with few corporate stories in the mix, traders will turn their attention to the durable goods and CB consumer confidence reports.

US core inflation is on the rise, and this could be the start of an increase in consumer appetite. The economic data from the US is not strong enough to warrant a rate rise next month, but that won’t stop dealers from fretting about it.

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