Greece pays up on time but fails to impress

Heading into the close European equity markets are hanging on to positive territory even though they’ve been drifting lower.

London skyline
Source: Bloomberg

The reopening of Greek banks has lifted investor confidence, but European stock markets have been slowly giving back their gains in the afternoon session. Greece has taken a step in the right direction by opening the doors to its banks, but all is not well, as capital control controls remain strict. Greece has paid July’s instalment to the IMF but that’s done little to reassure investors. The focus is now on next month’s repayments to creditors. The Greek debt saga has been on repeat for five years, so traders have learned what to expect, and they suspect this current calm between the storms won’t last long.

The London market is underperforming when you look at its eurozone equivalents, and that is down to a disappointing day for commodity related companies. Gold is going through the floor, and not even the brave will try and catch it as the Federal Reserve could be a couple of months away from an interest rate rise.

The US market is broadly unchanged and now dealers are focusing on earnings season, the spotlight has been momentarily taken off Europe. Halliburton has held onto its gains after the oil field services giant easily exceeded the exceptionally low analyst estimates. The company is still waiting for the green light from the regulators to complete the Baker Hughes deal, and with the price of oil stubbornly low it is difficult to see further upside to Halliburton’s share price. 

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.