Greece is going nowhere fast

In mid-morning trading the FTSE 100 is in the red as talks of Greece’s third bailout will be delayed. 

A Greek flag
Source: Bloomberg

Greece is going nowhere fast, and whatever bullish sentiment that was injected into the markets on the announcement of the third bailout has been eroded now that talks are set to start off on the wrong foot. It is just one never-ending sob story when it comes to dealing with Athens, and equity markets have no more patience.

Eurozone markets are being hammered by Greek woes, and the FTSE’s saving grace is that the mineral extractors are having a good day for once, and that has prevented the British benchmark from having a total meltdown.

The cat is out of the bag when it comes to China, and the collapse in the stock market overnight has confirmed that Beijing’s stabilisation polices are not  working. I feel that confidence will be difficult to get back, no matter how much money they throw at it.

Reckitt Benckiser is trading higher this morning on the back of its strong first-half performance. The consumer goods company marginally beat estimates on revenue, and the raised full-year guidance was the icing on the cake. The firm is performing well in both developed and developing markets, and its wide range of goods has helped its diversification policy. Reckitt Benckiser has made sure to cash in on the new health kick that has taken off in the West, and the cost-cutting programme also played a role in increasing the full-year forecast. 

Ryanair shares have dipped even though the company is optimistic about its full-year passenger numbers and profits. The Irish airline is preparing for battle and has a series of price cuts for the winter season lined up. Seeing as arch rival easyJet posted its first ever first-half profit in May, this will remain on Mr O’Leary’s radar.

We are expecting the Dow Jones to open ten points lower, at 17,560, as the US futures market is more concerned with the reporting season than the problems of Greece and China. US dealers also have a Fed meeting this week to contend with, and the feeling is that they are in no rush to raise interest rates, especially now China seems so jittery and Greece remains fragile. 

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