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.