Global macro overview for 10/07/2015
New developments and sudden change of plans of Greek Prime Minister Tsipras with his new bailout proposal surprised the markets. A new deal with EU is a major change in terms on negotiations with creditors. The bailout is worth over €53.3 billion now and neglects everything the Greek people voted in Sunday’s referendum. The main and very attractive changes are: debt restructuring, 35 billion investment plan (aka «Marshal Plan» for Greece), 3-year (instead of 5 months) proposal.
The market’s response to the Greek news is positive, so the EUR/USD pair is climbing higher from the level of 1.0990 to the resistance at the level of 1.1133. European stocks opened with a gap up and peripheral spreads plunge :10-year Portugal risk premium over 10-year Bunds drops below 200bps, 10-year Bund yields jump 8bps while 10-year Italian yields drop by 13bps.
What to pay attention over the weekend (all times BST):
2pmBST Eurogroup to discuss Greece’s proposals
3pmBST Eurozone summit
5pmBST EU Summit
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