Daily Market Report - 30/06/2015

Greek PM Alexis Tsipras has urged voters to reject creditors' demands in a snap referendum on Greece's debt crisis due on Sunday. Tsipras said a clear vote against austerity would help Greece negotiate a better settlement to the crisis.

Greece's bailout expires on Tuesday, the same day it faces a deadline to repay a €1.6bn (£1.1bn) loan to the International Monetary Fund (IMF). EU leaders have warned that a rejection of the creditors' proposals on Sunday would mean Greece leaving the Eurozone - though Tsipras says he does not want this to happen.

Mr Tsipras also hinted strongly that he would resign if the result of the referendum was a "yes" vote, saying he would respect the result of the vote but would not lead a government to administer austerity in perpetuity.

Ratings agency Standard and Poor's cut Greece's sovereign debt rating one notch further into junk levels to CCC- on Monday, saying there was a 50 percent probability it would leave the euro zone. German CPI figures also released yesterday, with the YoY coming in at a disappointing 0.3% against a 0.5% consensus, however this was pretty much a non-event given the focus for the Euro at the moment is solely on Greece.

The GFK consumer confidence index published yesterday showed confidence among UK shoppers climbed to a 16-year high. British household spending, the main driver of the country's robust economic recovery, was weak at the start of the year. A pick-up in wage growth and the lowest inflation in fifty years has boosted disposable income in recent months.

However Mortgage approvals were a disappointment yesterday. Mortgage approvals for house purchases numbered 64,434 in May from 67,580 in April. Analysts had forecast 68,700 mortgage approvals were made in May. Yesterday’s data aside there have been signs that the housing market is heating up again. Mortgage approvals rose in four of the last six months, and the pace of price rises has picked up once again.

US pending home sales for the month of May were a disappointment. Coming in at 0.9% against a 1.2% consensus. This is now the 4th time in 6 months that the pending home sales has missed consensus, outlining concerns raised by Yellen that the property market is going through a slow period. The only other piece of note from the US was the Dallas Fed Manufacturing Business Index, with the index showing a reading of -7.0 against a -20.8 consensus.  

Key Announcements

08:55 - EUR - German Unemployment rate – expected to remain unchanged at 6.4% 
10:00 - EUR -  Consumer Price Index – expected to increase to 0.3% from 0%
15:00 - USD -  US Consumer confidence (June) expected to improve to 97.3 from 95.4