Morning Euro Markets Bulletin

ADVFN  Morning Euro Markets Bulletin Daily world financial news Monday, 29 June 2015 10:18:34 Monitor Quote Charts News CFD's Spreadbetting Free BB   Sponsored by: Fisher Investments Worried About Retirement? Download Our Free Guide For Investors with £250K+ Portfolios London Market Report FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts London open: Greek chaos sparks market sell-off; airline stocks drop The UK stock market and indices across Europe suffered a steep sell-off on Monday morning after Greece imposed capital controls and called for a referendum on bailout terms, pushing the country nearer to an exit from the Eurozone. Prime Minister Alexis Tsipras announced on Saturday that the government would be putting creditors' "unbearable" proposals to the public vote on 5 July. Greece's parliament has backed the plan for a referendum. The FTSE 100 was down 1.85% at 6,628.67 after the first hour of trade, having touched a low of 6,598.64 early on. The index has not dipped below the 6,600 mark since mid-January. After talks with lenders failed at the weekend, Greece has now effectively run out of time to secure funding to help pay its €1.6bn debt repayment to the IMF on Tuesday, the same day that its current bailout agreement expires. Athens has confirmed that Greek banks will be closed all week due to an "extremely urgent" need to protect the financial system after the ECB decided to freeze emergency funding. Cash withdrawals from ATMs will be limited to just €60 a day. The stock market in Athens is also expected to remain closed on Monday. Mohamed El-Erian, well-known economist and chief economic adviser at Allianz, said he now sees "an 85% probability that Greece will be forced to leave the Eurozone". "What we are seeing here is what economists call the sudden stop, when the payment system stops. The logic of a sudden stop is a massive economic contraction, social unrest and it's going to make continued membership of the Eurozone very difficult for Greece," he said. Airline stocks slide Travel tour operators TUI and Thomas Cook dropped sharply in early trading as investors expressed concerns about Greece and the impact of potential social unrest on the travel market. Wider concerns about the disruption on tourism from recent terrorists attacks in Paris and Tunisia were also likely dampening sentiment. Similarly, airline peers IAG and Easyjet were also trading in the red. IAG in particular was registering heavy losses after the company offered concessions in its bid to merge with Aer Lingus after regulators raised competition concerns. Stocks in the financial sectors such as Hargreaves Lansdown, Aberdeen Asset Management and Henderson Group were falling as market volatility increased across Europe. FTSE 100-listed drinks bottler Coca-Cola HBC, which has a secondary listing in Athens, was also suffering heavy losses. Just two stocks on the blue-chip index, precious metal miners Randgold and Fresnillo, were making gains as investors sought out safe-haven investments such as gold. Trade online for just £3.95* until 31 July Better price, Better tools,  Better platform,  Better trading - TD Direct Investing. Find out more You may not get back all the money you invest. *Terms apply Market Movers techMARK 3,118.38 -1.61% FTSE 100 6,628.67 -1.85% FTSE 250 17,522.01 -1.69% FTSE 100 - Risers Randgold Resources Ltd. (RRS) 4,411.00p +0.85% Fresnillo (FRES) 700.00p +0.29% FTSE 100 - Fallers TUI AG Reg Shs (DI) (TUI) 1,029.00p -7.55% International Consolidated Airlines Group SA (CDI) (IAG) 496.00p -3.60% Hargreaves Lansdown (HL.) 1,153.00p -3.51% Dixons Carphone (DC.) 451.90p -2.96% Coca-Cola HBC AG (CDI) (CCH) 1,387.00p -2.94% easyJet (EZJ) 1,531.00p -2.92% Standard Chartered (STAN) 1,024.50p -2.89% Old Mutual (OML) 203.60p -2.77% CRH (CRH) 1,808.00p -2.74% Barclays (BARC) 265.10p -2.66% FTSE 250 - Risers Centamin (DI) (CEY) 63.15p +0.96% Grainger (GRI) 225.00p +0.67% OneSavings Bank (OSB) 317.20p +0.60% Ocado Group (OCDO) 428.20p +0.59% Aggreko (AGK) 1,452.00p +0.21% Acacia Mining (ACA) 307.70p +0.13% NB Global Floating Rate Income Fund Ltd GBP (NBLS) 97.75p +0.10% John Laing Infrastructure Fund Ltd (JLIF) 122.00p +0.08% FTSE 250 - Fallers Thomas Cook Group (TCG) 134.60p -6.66% Euromoney Institutional Investor (ERM) 1,140.00p -5.55% Henderson Group (HGG) 263.00p -4.50% Vedanta Resources (VED) 543.00p -4.06% esure Group (ESUR) 247.00p -4.04% Fidelity China Special Situations (FCSS) 146.50p -3.93% Evraz (EVR) 123.00p -3.68% Man Group (EMG) 158.90p -3.64% Bodycote (BOY) 691.00p -3.63% UK Event Calendar Monday 29 June INTERIMS Porvair INTERNATIONAL ECONOMIC ANNOUNCEMENTS Balance of Payments (GER) (07:00) Business Climate Indicator (EU) (10:00) Economic Sentiment Indicator (EU) (10:00) Pending Homes Sales (US) (15:00) GMS Castleton Technology, JSC RusHydro GDR (Reg S) ANNUAL REPORT Bonmarche Holdings AGMS 4D Pharma , Advanced Oncotherapy, Anglo Asian Mining, Anglo-Eastern Plantations, Ariana Resources, Baron Oil , Beowulf Mining, BH Global Ltd. GBP Shares, Elderstreet VCT, Energiser Investments, Federal Bank Ltd (The) GDR (REGS), GLOBO, Kemin Resources, Paternoster Resources, Savannah Petroleum , Starcom, Tiger Resource Finance, Trans-Siberian Gold, Trinity Exploration & Production, Vianet Group, Volvere, Xtract Resources UK ECONOMIC ANNOUNCEMENTS Consumer Credit (09:30) M4 Money Supply (09:30) M4 Sterling Lending (09:30) Mortgage Approvals (09:30) FINAL DIVIDEND PAYMENT DATE Pacific Assets Trust Is Now The Time To Buy Gold, Silver & Palladium? Receive Our Free Precious Metals Investor Guide Trio Click Here Europe Market Report FTSE 100 Euronext Dax perf CAC 40 European stocks tumbled at the open, the euro lost ground against the dollar, Greek bonds took a beating and German Bund prices rose, as the Greek debt saga took a turn for the worse, with capital controls now in place to prevent the country's banking system from collapsing. Greek Prime Minister Alexis Tsipras has called for a referendum on 5 July so the people can decide whether to accept the terms of the bailout being offered by international creditors. Meanwhile, European finance leaders have refused to extend Greece's bailout beyond Tuesday and the European Central Bank has frozen its emergency liquidity assistance to the debt-ridden country. As a result, the Greek government has imposed capital controls, closing the country's banks for a week and imposing a cap of €60 a day on cash withdrawals. Early on Monday, European Union commissioner for economic and financial affairs Pierre Moscovici said on French radio that EC president Jean-Claude Juncker will put forward new proposals in Brussels later in the day. Moscovici said the EC was willing to re-start negotiations with Athens in a bid to avert a default. By 0830 BST, the benchmark Stoxx Europe 600 index was down 2.7%, while France's CAC and Germany's DAX had both fallen 4%. The Greek stock market was closed by government decree, but elsewhere in the periphery, Italy's FTSE MIB was down 1.7% and Spain's IBEX 35 was 3.3% weaker. With Greece hurtling towards default, investors sought the safety of German debt and gold. The yield on the 10-year German government bond was down16 basis points at 0.767%, while gold futures for August delivery rose 0.6% to $1,180.70 on the Comex. Meanwhile, Greek bonds took an absolute battering, with the yield on the 10-year up 367 basis points at 14.55%. The corresponding Spanish and Italian government bond yields were up 19 and 20 basis points at 2.308% and 2.349%, respectively. In currency markets, the euro recovered from heavy losses in Asian trade, but was still 0.6% lower against the greenback at $1.1100. In Asian trading, the single currency fell to an eight-year low against the pound. "The Greek debt crisis really is a 'crisis' now," said Societe Generale strategist Kit Juckes. Despite the downbeat tone, analysts said heavy losses were unlikely to be sustained and pointed to the fact that the ECB would likely limit contagion. "Given market optimism towards a Greek deal over the last week, the initial risk-off move could be pronounced. Post the initial shock, the ECB's response and sticky domestic capital should limit contagion," said Deutsche Bank strategist Francis Yared. Yared also pointed out that the situation is different from 2010-2012 given a reduced direct exposure to Greece from the non-domestic private sector, the improved capital and liquidity position of European banks, the improved fiscal and external position of the periphery and the existing ECB firewall. "Peripheral spreads will widen, but the extent of the widening will be determined by the speed and strength of the ECB's reaction function. Beyond the initial sell off, outright peripheral yields should stabilise if the ECB proves to be as aggressive as we expect and domestic capital remains sticky," said Yared. Corporate news flow was scarce, but Novartis was in focus after saying it has agreed to buy Australian biotechnology company Spinifex Pharmaceuticals. UK Oil & Gas Investments Dear Subscriber, It’s the stock everyone’s talking about… UK Oil & Gas is a company rich with potential.         Set to go again? The shares are up 440.7% this year alone.*                 And more important news could be on the way. Download your Free Report now US Market Report US close: stocks mixed ahead of Greece's critical weekend US stocks closed mixed on Friday, as investors weighed up better-than-expected consumer sentiment data with Greece's upcoming critical weekend talks. At close, the Dow Jones Industrial Average was up 57 points at 17,947, the S&P 500 was down one point at 2,102 and the Nasdaq declined 32 points to 5,081. Consumer sentiment rose to a final June reading of 96.1, reaching a five-month high after a decline in May, according to reports on the University of Michigan gauge. Economists had expected the final June figure to match a preliminary result of 94.6. European stocks fell as investors looked to weekend negotiations between Greece and its creditors after the latest round of talks failed to yield an agreement, just days before Athens is due to repay its €1.6m debt to the International Monetary Fund. Elsewhere, Asian stocks fell, with China's Shanghai Composite Index dropping 7.40% on concerns about overvaluation in the country's stock market. "I expect to see significant risk aversion... with investors preparing for fireworks over the weekend," said Craig Erlam, senior market analyst at OANDA. "The rhetoric coming from both camps over the last couple of days doesn't make for nice reading and many people will be preparing for the worst-case scenario if both sides refuse to back down on key issues, most notably pensions, and accept the consequences," he added. In company news, Micron Technology tumbled 18.2% after the semi-conductor company reported a drop in third-quarter earnings late on Thursday. In the wake of the results, analysts at Stifel Nicolaus, JP Morgan, Raymond James, Pacific Crest and Wells Fargo all cut their targets on the stock. Celladon Corp dipped after the the biotechnology warned that it could be forced to liquidate. UnitedHealth Group surged on a series of analyst upgrades, which came after the Supreme COurt ruling upheld Obamacare subsidies on Thursday. Oil prices edged lower, with West Texas Intermediate losing 0.3% to $59.54 a barrel, while Brent shed 0.1% to $63.17 a barrel. Gold futures advanced, while the dollar gained against the euro, yuan and the pound. Investors sold off Treasurys, driving the 10-year note up to 2.76%. INVEST IN DUBAI WITH UP TO 10% GUARANTEED RENTAL YIELD Limited availability, initial investment discounted by 26%, rental returns averaging 8.28% guaranteed. For further information, click here. Newspaper Round Up Monday newspaper round-up: Greece, UK banks, Samsung Bioepis Greece has temporarily shut down its banks and suspended trading on its stock market after the collapse of talks between Athens and its lenders and the ECB's decision to freeze life support for Greek banks, reports The Telegraph. An annual survey of the world's top 1,000 banks by The Banker has shown that HSBC, RBS and Barclays have fallen down the rankings as Chinese rivals surged ahead, reports The Guardian. Samsung Bioepis has announced plans to list on the Nasdaq with a target valuation of at least $8bn as part of a broader restructuring at the South Korean parent company, the Financial Times says. UK infrastructure spending rose nearly 72% in the first few months of the year, boosted by renewable energy and road projects, the Financial Times writes. Sirius Minerals' plan to mine 2.7bn tonnes of potash in the North York Moors is to face a national park's committee this week, marking the culmination of five years of planning to build on of Britain's biggest mines, The Times writes. The Bank of International Settlements has warned that monetary policymakers are defenceless against the next financial crisis, as central banks have used up their ammunition to tackle the last crises, The Telegraph writes. A poll by the CBI has shown that financial firms want the government to cut the cost of complying with new regulation, according to The Guardian. Policy body camera manufacturer Vievu has been snapped up by security products group Safariland ahead of the latter's planned IPO next year, writes The Wall Street Journal. Save Money on your Energy Bills ADVFN have partnered with the UK’s largest independent energy supplier First Utility to bring you lower energy bills: the average First Utility customer saves £229 per year on their energy. Click here to see how much you could save   New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds, Sipps Travel and Cars - FREE and Easy service CLICK HERE To advertise in the Euro Markets Bulletin please contact patrick@advfn.co.uk     To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49

ADVFN Newsdesk - Greek Impasse Mutes Market Optimism

ADVFN  World Daily Markets Bulletin Daily world financial news Friday, 26 June 2015 10:19:47    Monitor Quote Charts News Toplists Forex Boards   Sponsored by: VectorVest How to Analyze Any Stock in 30 Seconds (or Less) BUY, SELL or HOLD? Knowing which stocks to buy can be tough. But armed with the right tools, you can easily separate the winners from the losers. Watch this short video to see how fast and easy it can be to analyze your stocks and manage your portfolio! Watch This Video  US Market NYSE AMEX Dow Jones Nasdaq Please click on the images to view our interactive charts The major U.S. index futures are pointing to a mixed opening on Friday, with sentiment suggesting nervousness as the Greek debt crisis is yet to reach a conclusion. With the action now shifting to Saturday, when the two parties central to the crisis, namely Greece and its creditors, are expected to restart their negotiations, uncertainty looms large. The tough stance taken by the IMF and the domestic constraints under which Greece is negotiating the deal are turning out to be bottlenecks. The dollar is firmer and commodities are mostly lower. U.S. stocks retreated on Thursday, extending their losses for a second straight session, as the stalemate in the Greek debt talks weighed on the markets. The major averages opened higher, as traders savored positive jobless claims and consumer spending data. However, after holding above the unchanged line till afternoon trading, the indexes came under pressure and ended lower for the session. The Dow Industrials ended up 75.71 points or 0.42 percent at 17,890, the S&P 500 Index closed 6.27 points or 0.30 percent lower at 2,102 and the Nasdaq Composite finished at 5,112, down 10.22 points or 0.20 percent. Twenty-five of the thirty Dow components closed lower, with 3M (MMM), Chevron (CVX), Caterpillar (CAT) and American Express (AXP) retreating sharply in the session. On the other hand, UnitedHealth (UNH) rallied 2.65 percent. Among the sectors, oil service and computer hardware stocks came under significant selling pressure. On the economic front, the Labor Department reported that jobless claims rose to a less than expected 271,000 in the week ended June 20th from an upwardly revised 268,000 in the previous week. The four-week average slipped to 273,750 from 277,000. However, continuing claims calculated with a week's lag rose by 22,000 to 2.247 million in the week ended June 13th. The Commerce Department also released a report showing that personal income rose 0.5 percent month-over-month in May, equaling the growth in the previous month and slightly better than the 0.4 percent growth expected by economists. Personal spending jumped 0.9 percent, notably faster than the 0.1 percent rate in the previous month and also above the 0.7 percent growth expected by economists. In real terms, personal spending was up 0.6 percent. The core price consumption expenditure index was up 1.2 percent year-over-year, slower than the 1.3 percent rate in April. The flash estimate of Markit's survey of conditions in the U.S. service sector showed a slowdown in the pace of expansion. The service sector PMI slipped to 54.8 in June from 56.5 in May. The Kansas Federal Reserve's regional manufacturing survey showed that the PMI improved to -9 in June from -13 in May, although it suggested that manufacturing activity is still depressed. Discover Mark Cuban's Investing Secrets If you’ve ever watched ABC’s hit TV show, “Shark Tank,” and found yourself thinking:  “I wish I could invest in that company right now. I know I’d make a fortune. It’s a no-brainer!” Then read this message carefully, because it may be the most important wealth-building letter you’ve ever read US Economic Reports CADUSD Oil Gold Allbanc Please click on the images to view our interactive charts The University of Michigan will release its final U.S. consumer sentiment index for June at 10 am ET. Economists expect the index to rise to 94.6 in June from 90.7 in May, unrevised from the preliminary estimate released in mid-June. Kansas City Federal Reserve Bank President Esther George is scheduled to speak on the payments system in Kansas City, Missouri at 12:45 pm ET. 4 Days, 4 Trades, +40% Average Returns! After years of develoment and testing , a lead stock options trader has develped a simple system that harnesses the power and leverage of options, yet is so easy to use anyone can do it. He'll show you step-by-step how he found and placed 4 trades, and in just 4 days they averaged +40% returns! See exactly how you can use this 10 minute strategy for yoursef by clicking here. Stocks in Focus FTSE 100 Euronext Dax perf CAC 40 Please click on the images to view our interactive charts Nike (NKE) reported fourth quarter earnings and revenues that exceeded estimates. The company also said worldwide futures orders for delivery from June through November 2015 were up 2 percent year-over-year at $13.5 billion. The growth was a steeper 13 percent on a currency neutral basis. Finish Line's (FINL) first quarter results exceeded estimates and it reaffirmed its full year guidance. Micron (MU) reported third quarter adjusted earnings that trailed estimates and its revenues also missed expectations. The company's fourth quarter revenue guidance was also weak. Potash Corp. of Saskatchewan (POT) confirmed that it has made a private proposal to acquire Germany's K+S. Save on Electricity and Natural Gas Sign up with ADVFN Preferred Energy Partner Just Energy and start saving on your for electricity, natural gas, solar and green energy bills. Click Here. European Markets European stocks opened moderately lower and languishing in the red in early trading, as the Greek debt talks have been pushed to Saturday. The averages have currently turned mixed. If Greece and its creditors agree to something by Saturday or Sunday, the Greek and German parliaments need to ratify the package before it can be implemented. The situation remains critical, as Greece needs to unlock the last 7.2 billion euros of its EU-IMF bailout in order to pay a loan installment to the IMF on June 30th. Greece's current EU bailout also expires on Tuesday. In corporate news, the U.K.'s Tesco reported a small decline in group sales, excluding fuel and VAT, for the first quarter, although the decline was less than expected. On the economic front, a report released by the German Federal Statistical Office showed that import prices in Germany fell 0.8 percent year-over-year in May compared to the 0.6 percent decline in April and the 0.4 percent decrease expected by economists. Import prices have been declining since January 2013. On the other hand, export prices rose 1.4 percent, slower than the 1.6 percent increase in April. Money supply growth in the eurozone unexpectedly slowed in May and loans to the private sector increased, the European Central Bank reported. The M3 money supply advanced 5 percent year-over-year, slower than the 5.3 percent growth seen in April. The money supply was expected to improve to 5.4 percent. Be The Boss of Your Own Money.  Be Type E*.  Sign Up with E*TRADE Now. Asian markets USDCAD USDEUR USDGBP USDJPY Please click on the images to view our interactive charts The major Asian averages retreated, as Greek worries intensified. The Chinese market led the slide, with the Shanghai Composite Index plunging more than 7 percent. On the other hand, the New Zealand and South Korean markets bucked the downtrend with modest gains. The Japanese market succumbed to the strength of the yen, which gained ground on rising risk aversion. The Nikkei 225 Index languished below the unchanged for much of the session before ending down 65.25 points or 0.31 percent at 20,706. Oil, real estate, food, mining, pharma and export stocks were among the worst performers of the session. On the other hand, paper, chemical, telecom and financial stocks gained ground. Australia's All Ordinaries Index fell sharply in early trading and then moved sideways at lower levels. The index closed 83.80 points or 1.49 percent lower at 5,536. A majority of sectors came under selling pressure, with energy, utility, industrial, material and real estate stocks among the worst decliners of the session. China's Shanghai Composite plummeted 334.91 points or 7.40 percent before closing at 4,193, and Hong Kong's Hang Seng Index ended at 26,664, down 481.88 points or 1.78 percent. On the economic front, a trio of reports released by the Japanese Ministry of International Affairs and Communications showed fairly positive results. Annual Japanese consumer price inflation slowed to 0.5 percent in May from 0.6 percent in April. Economists expected a tamer inflation rate of 0.4 percent. Core consumer prices were up 0.1 percent. Meanwhile, core consumer prices for the Tokyo region, considered a precursor for the whole of Japan, rose 0.1 percent year-over-year in June, in line with estimate but slower than the 0.2 percent rate in May. The jobless rate for Japan remained unchanged at 3.3 percent in May, in line with estimates. Meanwhile, household spending rose 4.8 percent year-over-year in May, ahead of the 3.6 percent increase expected by economists. Average income per household rose 1.5 percent compared to a 7.5 percent increase in the average consumption expenditure per household. 4 Days, 4 Trades, +40% Average Returns! After years of develoment and testing , a lead stock options trader has develped a simple system that harnesses the power and leverage of options, yet is so easy to use anyone can do it. He'll show you step-by-step how he found and placed 4 trades, and in just 4 days they averaged +40% returns! See exactly how you can use this 10 minute strategy for yoursef by clicking here. Currency and Commodities Markets Crude oil futures are slipping $0.54 to $59.16 a barrel after sliding $0.57 to $59.70 a barrel on Thursday. An ounce of gold is trading at $1,172, up $0.20 from the previous session's close of $1,171.80. On Thursday, gold fell $1.10. On the currency front, the U.S. dollar is trading at 123.72 yen compared to the 123.63 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1200 compared to yesterday's $1.1205.     To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49

Weekly Forex Currency Review

ADVFN III Weekly FOREX Currency REVIEW   Global Forex News from ADVFN Supplied by advfn.com   New Forex Platform Coming Soon From ADVFN ADVFN has been working behind the scenes on a new forex platform. It features a cutting edge user interface, probabilistic analysis and a new way of looking at forex trades. If you would like to help us develop the product further please click here Weekly Market analysis GBP/EUR GBP/USD GBP/JPY GBP/CHF Greece will continue to be a key short-term focus with further brinkmanship and last-minute meetings ahead of the June 30th deadline to reach agreement and make the bundled IMF payments. There will be further volatility whatever the outcome and especially if there are capital controls or a Greek default. The US data releases will also be important with a strong focus on the employment data as Fed interest rate expectations will remain very important during the third quarter.   Key events for the forthcoming week Date Time (GMT) Data release/event Tuesday June 30th  08.30 UK current account Wednesday July 1st  12.15 US ADP employment Thursday July 2nd  12.30 US employment report Friday July 3rd  08.30 UK PMI index (services) Dollar: The US data releases have continued to suggest a moderate overall improvement, especially in the housing sector while investment trends remain generally subdued. With some slight increase in reported inflation and a tightening labour market, the Federal Reserve will be looking for a limited tightening of monetary policy. There will be a strong suspicion that action has been delayed by Greek uncertainty and even a short-term Greek solution would increase the potential for a rate increase. Overall monetary-policy trends should provide dollar support and there will also be further capital inflows from emerging markets which will provide solid underlying US backing.     The dollar was able to make net gains during the week, primarily against the Euro, with the US currency gaining some support from stronger expectations of a Fed tightening. The Euro dipped to lows below 1.1200. US existing home sales data was stronger than expected with a rise to an annual rate of 5.35mn for May from a revised 5.09mn previously and this was the strongest reading since November 2009. As well as rising sales, there were strong increases in prices which will maintain unease surrounding inflationary pressures as well as boosting confidence in the overall housing sector. Headline durable goods orders data was weaker than expected with a 1.8% headline decline while the core data was in line with expectations and a key underlying capital-spending release advanced for the second successive month. The latest PMI manufacturing release was slightly weaker than expected at 53.4 for June from 54.0 previously, but there was a stronger than expected figure for new home sales at 546,000 for May which was the highest figure for seven years. The final reading for first-quarter GDP was in line with expectations at -0.2% from -0.7%. Jobless claims at 271,000 from a revised 268,000 previously have been below the 300,000 level throughout the past four months. A stronger than expected 0.9% gain in personal spending was offset by a slightly lower than expected income gain at 0.5%. Fed Governor Powell stated there had been a slowdown in the economy, but he also suggested that two interest-rate increases were realistic this year which provided significant underlying dollar support on expectations that this reflected the core Fed view. There were no major comments from other key Fed officials. Free guide to Charting from ADS-Securities London Learn how to use the charts and improve your trading with our FREE guide, covering types of charts, trend lines, ranges, support and resistance and technical analysis. Apply for an account and get FREE upgrade to MT4Plus and 0.5 spreads until 30th June on UK100. Apply today Your Capital is at Risk. Euro Greek developments will inevitably dominate in the very short-term. A default and eventual Euro-zone exit is still an important risk given the political divisions which would be likely to put strong downward pressure on the Euro, at least in an initial response. The most likely outcome is still some form of compromise deal which would provide initial relief, but not provide a longer-term solution. Although growth and inflation trends will remain more favourable, the ECB will be committed to its bond-buying programme which will limit the scope for Euro recoveries and the most likely outcome is gradual overall depreciation. The Euro pushed higher on hopes for Greek deal before retreating significantly later in the week with a move back to the 1.1200 area against the dollar and significant losses on the main crosses.   The German IFO business confidence index was weaker than expected at 107.4 for June from 108.5 previously which was something of a surprise given the very expansionary monetary policy. The institute did not suggest that Greek uncertainty was  having a significant negative impact while the Euro-zone PMI index strengthened to a four-year high. The overall mood turned more positive as the Greek government had made some concessions on the crucial stumbling blocks of VAT and pensions reforms with strong expectations of a deal this week. There were, however, concerns that there could be significant parliamentary opposition both within the Syriza party and outside given the dominance of tax increases with the deal not providing any longer-term relief for Greece. There were also increased expectations of the Euro being used as a funding currency if there is a resolution which tended to push the Euro weaker. Later in the week, there was a further series of confusing and contradictory headlines with Greek negotiators apparently given a deadline to accept the latest proposals or face a take-it-or-leave-it option at the Eurogroup meeting. There were then reports that there was a basis for agreement which, in turn were denied. ELA for Greek banks was left unchanged on Thursday after recent increases, but there were reports that Bundesbank head Weidmann and five other ECB officials had opposed the continued funding of Greek banks. Pressure for support to be withdrawn will continue to increase if there is no Greek deal with further fears of capital controls. The stream of rhetoric surrounding Greece continued during the Eurogroup meeting until talks were suspended with no agreement reached. With conflicting reports over the state of negotiations there was an increasing reluctance to trade given the high degree of uncertainty. There will  be another Eurogroup meeting on Saturday which has been described as the final chance for reaching a deal. Yen:    The Bank of Japan is likely to maintain its bond-buying programme over the next few months and this will tend to erode underlying yen support even if there is no increase in quantitative easing. There are likely to be further net capital flows overseas which would also undermine the Japanese currency. The Bank of Japan and government will remain wary over excessive yen depreciation, especially as it would risk trade retaliation and verbal intervention is likely to counter excessive depreciation. The yen will also gain some support when risk appetite deteriorates, but net losses are likely. The US currency was boosted by an increase in US bond yields to around 2.40% as well as the stronger than expected US housing data, but it was unable to hold above the 124.00 level and the Euro dipped below 138.0 with the yen generally resilient. There was further volatility on the Chinese equity market which may create caution over selling the yen aggressively. The latest Bank of Japan minutes had little impact. Japanese inflation data was marginally stronger than expected with a national core annual rate of 0.1% for May while the household spending data was also stronger than expected with a 4.8% annual increase. The data provided some limited yen support with the Japanese currency also supported by fragile risk conditions as equity markets were generally weaker while Greek unease continued and provided net yen support Barclays, Lloyds, HSBC & RBS- Is It Time To Sell UK Banks? Super-star fund manager Neil Woodford famously stopped investing in banks, describing them as “volatile instruments with impenetrable accounts.” He also recently highlighted that “fine inflation” is becoming a serious issue. Our Free Report Takes a look at some of the UK's largest banks; see why investors could be better off selling them. Download Free Report Now Sterling Greek stresses could lead to short-term defensive Sterling demand. There will also be further near-term confidence in the growth outlook, especially with a stronger labour market. With a significant strengthening in earnings growth, there will be increased speculation that the Bank of England will move towards a policy tightening and could even move ahead of the Federal Reserve. These expectations will underpin Sterling for now, but there will still be significant concerns surrounding the current account deficit. Further fiscal tightening will also tend to limit the scope for monetary tightening, limiting support.   Sterling held a firm tone during the week with gains to near 0.7100 against the Euro and held comfortably above 1.55 against the dollar with the trade-weighted index at a seven-year high with some defensive support from Greek stresses. The CBI retail sales index was slightly below expectations at 29 for June from an exceptionally strong 51 for May, but still indicated robust underlying demand There were hawkish comments from Bank of England MPC member Weale who stated that wages now appeared to be rising faster than he expected and that the central bank should be ready to raise borrowing costs as early as August. There was a modest shift in Bank of England policy expectations with higher gilt yields as markets again speculated over an earlier than expected increase in rates and a steeper path of increases during 2016. MPC member Shafik commented that inflation was likely to rise given that the recent drop had been due to one-off factors, but there were no specific references to monetary policy. There were still underlying concerns surrounding the longer-term Brexit risks, particularly given the substantial current account deficit burden. Swiss franc: Greek developments will continue to be extremely important in the short-term. A collapse of talks and Greek default would risk a flood of defensive flows into the Swiss currency. The National Bank will remain on high alert with the possibility of intervention or an inter-meeting move to cut interest rates. A Greek deal would be likely to weaken the franc, although the overall evidence suggests losses will be limited given underlying franc demand. The franc hit resistance close to 1.0400 against the Euro and was generally resilient as the dollar held a firm tone, but was unable to hold above 0.9400. National Bank President Jordan continued to state that the franc was overvalued and there were also comments that the bank stood ready to take action if there was a surge in franc buying in the event of any Greek exit from the Euro-zone. The comments increased speculation over potential aggressive intervention which deterred long franc positions despite underlying franc demand on defensive grounds. Join over 1000 Top Finance professionals in the forex industry's most important event. Forex Magnates London Summit 2014, Nov 18-19, Reserve your seat today! Click Here Australian dollar The Australian dollar proved resilient at lower levels, but was unable to hold above the 0.7850 level against the US dollar. Interest related to carry trades was offset by continuing unease over the outlook for commodity prices and the Chinese economy. There were no major data releases during the week with house prices slightly weaker than expected for the first quarter. There were underlying doubts whether there domestic economy would be able to respond to lower interest rates and offset the impact of declining mining-sector investment. The Reserve Bank still wants the currency to weaken and there will be further important concerns surrounding the Chinese outlook with rallies fading quickly. Canadian dollar: The Canadian dollar briefly strengthened through 1.2200 against the US dollar, but was unable to sustain the gains and dipped to lows near 1.2400. The currency was undermined by slightly more hawkish rhetoric from US Fed officials as markets looked for higher US rates which curbed Canadian demand and there were also doubts whether the recovery in oil prices was sustainable. Yield trends are likely to remain slightly negative for the Canadian currency and the net outlook for commodity prices will tend to push the currency slightly weaker. Indian rupee: The rupee was able to maintain a generally firmer tone during the week and consolidated stronger than the 64.00 level against the US currency. There was further strength in the equity market which led to increased capital inflows and greater confidence in the currency. In regional terms, there were expectations that India could out-perform. There were still important reservations surrounding overall risk appetite and domestic concerns surrounding the monsoon season were also a feature. Confidence in the domestic economy has improved slightly, but with limited gains. International trends are likely to dominate with net rupee losses on Fed expectations. FCA regulated advice in FX, Gold and Silver Beta 2 is proud to offer personalised FCA regulated advice, completely tailored to your requirements. Attempting to yield returns in any climate, this is exclusive to ADVFN users! Click here to learn more! Hong Kong dollar The Hong Kong dollar maintained a firm tone during the week and moved to highs around 7.7510 against the US currency before edging slightly weaker. The main focus was on very high volatility in the Chinese equity markets which had some spill-over impact on the Hang Seng index as the Shanghai index fell sharply on Friday.   Trends in the local equity market will continue to have a significant impact and lead to further volatility in the local currency with the HKMA again a stabilising influence.   Chinese yuan: The yuan maintained a firm tone during the week and maintained its position close to the 6.20 area against the US currency. The HSBC PMI index was slightly stronger than expected at 49.6 for June from 49.2 previously, although there were still important doubts surrounding the overall outlook. There was further high volatility in equity markets. There were underlying expectations of a looser monetary policy, although the PBOC dampened expectations of action with a reverse-repo operation. Politically, there were pledges of cooperation between US and Chinese officials at the annual summit which dampened expectations that there would be strong US pressure for a weaker Chinese currency. Given fundamental developments, conflicting yuan pressures are liable to intensify Domestic and international pressures are likely to push the currency weaker.   New ADVFN Service - FREE Reports Get your free report on Isa's, Investment Trusts, Funds, Sipps Travel and Cars - FREE and Easy service CLICK HERE     To unsubscribe from this news bulletin or edit your mailing list settings click here. Registered Office/Accounts Dept: Suite 27, Essex Technology Centre, The Gable, Fyfield Road, Ongar, CM5 0GA. Customer Support +44 (0) 207 0700 961. Company registered in England and Wales: Number 2374988 VAT No. GB 549 2130 49