The standoff between Greece and its creditors continued yesterday with the latest eurogroup meeting ending without an agreement on a bailout programme for the country. The proposals from Greece were still deemed to be insufficient in the eyes of the institutions who called for deeper spending cuts to be made, especially with regard to the welfare system. Despite the standoff, the IMF said that they would not grant an extension to the €1.6bn debt repayment due on the 30th June, although they did suggest that this would put Greece in arrears rather than into outright default, notes Lloyds Bank. A working group of euro officials will meet today with the intention of ironing out differences, before Saturday's meeting of eurogroup finance ministers.
Datawise, the calendar remains exceptionally light today with eurozone money supply data and the final read of US consumer sentiment for June from the University of Michigan. Eurozone money growth is likely to have accelerated in May, reflecting both the ongoing impact of the ECB's QE programme and a recovery in bank lending to households and corporates, states Lloyds Bank. For the Uni. of Michigan survey, following the rise in the preliminary estimate to 94.6 from 90.7, the final read is not expected to be revised, adds lloyds Bank.
