This morning we see the release of the much anticipated Eurozone Consumer
Confidence figures. The figures are expected to hit a record four-month low,
with the readings expected to reinforce the growing fears of the general
discomfort in the peripheries surrounding namely Spain and Italy.

Eurozone Finance Ministers are due to meet in Brussels today, where they
are facing heavy pressure to find solutions and increase their efforts when
dealing with the debt crisis.  Most noticeably, Spain is set to release
the results of an audit which is intended to put a firm ‘price tag’ on
recapitalizing the country’s banking sector.

Yesterday, Greek stocks rose moderately in response to the news that a
coalition had been formed with Athens, with shares closing up 0.5%. This gave
some hope in the markets as Antonis Samaras was swamped in as new prime
minister; his party has forged a coalition with the socialists and the
smaller Democratic Party.

Minutes to the BoE’s June meeting showed stronger support for more
quantitative easing (QE) than many economists had expected but markets were
already geared for such a scenario after a speech by governor Mervyn King
last week. Weak labour data also bolstered the view that the BoE could resort
to another round of gilt purchases as early as next month. The latest minutes
showed four policymakers voted to increase the £325 billion total QE asset
purchase programme, compared to just one in the previous month.

In the U.S, the Fed has expanded its “Operation Twist” by $267
billion, this means it will buy long-term securities and at the same time
sell the same amount of short-term securities. The outlook for the USD still
remains apprehensive, with more traders likely to position themselves for
fresh stimulus following the central bank’s move to downgrade its U.S. growth
forecast.

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