Monday enjoys a crisis-free weekend

European markets have opened with tempered optimism, as for the first time in over a month we've managed to enjoy a weekend uncluttered by European, political and fiscal fireworks.

Frankfurt financial district aerial view
Source: Bloomberg

Capital controls are still in place in Greece, although the population’s ability to withdraw a weekly allowance of €420 in one go will make life a little easier. Considering the distrust that must be rife in Greece, it's likely we'll see numerous banks struggle as they physically run out of cash in the first couple of days this week.

A little more disconcerting is the escalation in German political squabbling, as tensions between Angela Merkel and Wolfgang Schauble look to be heading towards breaking point, and a disjointed German leadership is the last thing that the eurozone needs.

With the relative calm that has engulfed Europe, traders are feeling a little more comfortable and focusing on equities and the deluge of corporate data hitting them in this latest reporting season.

Fresh from the news that CEO Antony Jenkins was leaving Barclays, this weekend's speculation hinted towards another round of 30,000 redundancies, surprisingly causing barely a flutter in the company’s share price.

With gold hitting five-year lows and breaking major support levels, it is not too much of a surprise to see the FTSE fallers list dominated by the mining sector.

The US reporting season looks to kick it up another gear this week with some of the bigger names like Hasbro, Morgan Stanley, Verizon, Apple, Microsoft, Yahoo all revealing their numbers within the first two days alone. Analytical expectations for this latest reporting season have been so low that the bar looks to have been set for limbo dancing rather than hurdling.

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.