Daily Market Report 27/11/2012

Greece’s future in the euro has finally been confirmed, for now at least! Last night after months of discussion, the announcement was made that Greece would receive its third tranche of bailout funds, as well as numerous other adjustments to the requirements that may have strangled the economy.

Allaying initial fears that Greece may become illiquid, Greece was cleared to receive the €34.4bn December installment, endowing it with the cash necessary to survive. Further measures include rate cuts on bailout loans, suspended interest payments for a decade and extended time for a Greek bond buyback.

Despites investors’ unrelenting belief that the troika would manage to come to an agreement, the pressure, on what has been a focal point of the Eurozone economy, has lifted momentarily as euro leaders admire their efforts.

With a Greek plan in place, attention may soon turn to the next hurdles that the 17-nation area may have to maneuver. A seemingly relentless job, a future bailout for Spain may be the next saga Draghi and his counterparts must conquer, as well as the languid economic performance of each nation.

This morning, despite the much-lauded announcement, the effects of the bailout appear to have already been priced into the market. Following last week’s prolific gains for the shared currency, there were thoughts that the euro would not move much on the news, so far this morning, this seems to be the case. 

Key Announcements Today:

  • 09.30am – GBP – Revised GDP q/q
  • 09.30am – GBP – Prelim Business Investment q/q
  • 13.30pm – USD – Durable Goods Orders m/m
  • 15.00pm – USD – CB Consumer Confidence