Market Movers
An agreement between Greece and the creditor institutions on a 3-year rescue programme for the country may be reached as soon as today. If an agreement is reached today, it will go for approval by the Greek parliament in the next few days and approval by euro area finance minters in connection with an extraordinary euro group meeting on Friday. It still cannot be completely ruled out that a temporary solution is reached in the form of a bridge loan from the EFSF that will leave more time to reach a final agreement and provide the liquidity to Greece to make the crucial debt repayment to ECB on 20 August. This has so far been the solution preferred by Germany.
In the euro area, the German ZEW business sentiment indicator for August will be released today. We expect both sentiment on current conditions and expectations to improve slightly, but the weaker than expected Sentix investor confidence for the euro area released yesterday suggests that there is downside risk to our forecast.
In the US, unit labour costs for Q2 and NFIB small business sentiment for July will also be released today. They are only secondary releases and usually do not have any substantial market impact.
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