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Greece might end up missing euro zone cash
There’s a likelihood next month that Greece won’t receive up to 750 million euros, it’s expected to get under a debt relief deal with the EU concluded in 2018 because this European country has failed to complete a number of agreed reforms. That’s what euro zone officials uncovered on Monday.
The funds are part of nearly 4.8 billion euros of profits from the country’s bonds held by euro zone major financial institutions, to be returned to Greece by mid-2022 in semi-annual tranches as well as a waiver of the step-up interest rate margin on part of the euro zone loans.
The two measures generated nearly 750 million every six months. The funds were designed as an incentive for Greece to proceed with hard-won reforms, which were adopted under its three bailouts since 2010, and in general they amounted to 280 billion euros.
On February 27, the European Commission will come up with a report highlighting Greek progress in implementation its reforms. Eventually, the conclusion of this report is going to be decisive for euro zone finance ministers. It will help them to decide whether to permit the disbursement or not.
Most probably, the report will stress that this EU country hasn’t managed to cope with the agreed reforms.
EU finance ministers, expected to meet to have the issue negotiated on March 11, won’t allow the disbursement unless Greece completes what it needs to do between Feb 27th and March 11.
At different stages of completion up to 16 reforms are being run. The major ones have to do with the healthcare system, non-performing loan resolution as well as the clearance of government arrears.
All attention on the market is on the Brexit process. Fears over the no-deal Brexit pushed the British pound deep down yesterday after UK Prime Minister Boris Johnson claimed he was ready to abandon negotiations.
The market sentiment is mixed, and the US dollar is trading near the lowest levels for over two years. Let’s have a look at the main market movements today.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!