Other poor data included the quarterly house price purchase index, which worsened from 1.5% to 1.3%. US crude oil inventories also plummeted, as stocks fell by 4.2m barrels last week, a much large fall than the 2.5m barrels expected. In turn, WTI reached its highest price since October 2015 at $49.34.
There was a successful conclusion to the Eurogroup’s latest meeting to discuss the Greek bailout program. After over 11 hours of summit talks, Eurozone leaders announced a new deal to rescue Greece with its third bailout package. The outline of the deal allows the Eurozone to extend €10.3bn in rescue loans to keep Greece afloat this summer, beginning with a €7.5bn cash release next month. This positive news wasn’t mirrored in the markets however as analysts believed the bailout is just an attempt to cover up the cracks and doesn’t solve the deep underlying issues the Eurozone could face should Greece default in the future.
GBP: 09.30 – Gross Domestic Product (YoY) expected to remain at 2.1%
USD: 12.30 – Core Durable Goods Orders (MoM) expected to rise from -0.2% to 0.3%
USD: 12.30 – Unemployment Claims expected to fall from 278,000 to 275,000