Greek deal expected today, however traders prepare for further delays

James Hughes, Chief Market Analyst at Alpari, one of the world’s leading forex brokers, said: “European stock markets are expected to open lower this morning ahead of the eurogroup meeting of finance ministers.

Today's meeting should confirm whether Greece's future remains in the eurozone or not, with the latter having the potential to cause severe damage to the global economy. The only thing standing in the way of Greece receiving the next tranche of its bailout at the moment appears to be an agreement on its funding targets, however this is likely to be resolved in today's discussions.

However, given the fact that we have expected this to be resolved on several occasions previously, it is no surprise that the markets are preparing for further delays and more eurogroup meetings. This, along with the fiscal cliff in the US and ongoing tensions in the middle east, continues to be the greatest threat to the global economy at this moment in time, which is why volatility remains so low.

An agreement here today would go some way to easing this uncertainty, potentially even causing a brief rally in the markets. However, the main concern continues to be the fiscal cliff in the US, with the two main parties appearing far from an agreement on how to avoid the $600 billion of spending cuts and tax hikes that would send them into recession next year.

There is no significant data due out today, meaning the market is going to be driven solely by the eurogroup meeting. This makes for a very slow start to the week but could create some choppy markets with volumes expected to remain low for most of the day.”

Note: The content of this text comprises personal opinions and ideas and should not be taken or misunderstood as investment advice.

Lenka Sobotková | Account Specialist | AMI Communications