Yesterday, the markets sought to digest the news that the €130 billion bailout for Greece had finally been signed. The deal which was confirmed early on Tuesday morning resulted in a fairly volatile day with sterling finishing the day weaker against the euro. The UK’s public sector net borrowing figures came in better than the markets had anticipated showing the biggest budget surplus in four years. The surplus was a result of higher than expected tax receipts in January and the suggestion is that the UK will beat its own targets to cut the national deficit. Out today the Bank of England monetary policy committee meeting minutes will provide details on how the members voted on both the interest rate decision and the asset purchase facility which resulted in the injection of another £50 billion into the UK’s economy. Call in now for the latest update and the latest news.

Following the announcement that the Euro zone had agreed the second Greek bail out there was knee jerk reaction in favour of the euro; however, the trend lost momentum throughout the day. Some important points from the deal include the requirement for Greece to reduce its debt to 120.5% of GDP by 2020 from over 164% where it currently stands. Private sector investors were also expected to occur loses of 53.5% on the Greek bonds they held. Moreover, the 3 year loan package of €130 billion is dependent on the conditions set out being met on an on-going basis otherwise later tranches will be withheld. This saga is far from over. With regards to actual data releases yesterday, the Euro zone consumer confidence figures came in as expected. Out today the main data released is the French, German and Euro-wide manufacturing and services Purchasing Managers Index (PMI). Call in now for the latest update and the latest news.

There was very little data out in the US yesterday; but, US equities were buoyed by the announcement that Greece had signed its second bailout package .The main release today is the existing home sales which is expected to show a slight increase in the number of residential buildings that were sold during the previous month. Call in now for the latest update and the latest news.

Elsewhere, the Australian dollar fell shortly after the central bank released its minutes which included the suggestion that the bank would still consider cutting interest rates if demand conditions weakened. Switzerland’s trade balance figures were announced yesterday which were worse than expected. Moreover, Canada’s retail sales were also lower than anticipated. The main release today is the Purchasing Managers Index (PMI) data from China released first thing in the morning. Call in now for the latest update and the latest news.



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