European markets held steady or firmed on Wednesday, shrugging off
deep cuts to global growth forecasts as well as mounting uncertainty
over a deal to prevent Greece from defaulting.
Approaching midday, London's benchmark FTSE 100 index was flat at 6 928.08 points.
The CAC 40 in Paris climbed 0.25% to 5 016.90 points and Frankfurt the DAX 30 rose 0.40% to 11 374.18. The euro slid to $1.1123 from $1.1152 late on Tuesday.
The OECD on Wednesday chopped its forecasts and now sees the global economy growing by 3.1% this year instead of the 4.0% it predicted just over two months ago.
It slashed its forecast this year for the US economy, to 2.0% from 3.1%, although it held the outlook for the eurozone at 2.1%.
Meanwhile Greek Prime Minister Alexis Tsipras was headed to Brussels on Wednesday for make-or-break talks with EU Commission president Jean-Claude Juncker to reach a deal to unlock €7.2bn to help Athens make a critical repayment on Friday.
But months of fractious talks have failed to produce an agreement as the EU, IMF and ECB insist that Athens undertake greater reforms to get the bailout money, which Greece's anti-austerity government has refused to match.
Without a deal by the end of this week, fears are growing that Greece could default, possibly setting off a chain reaction that could end with a messy exit from the eurozone and cause havoc to the economy in Europe and the world.
Senior Market Analyst Craig Erlam at currency trading company Oanda said he fails "to see what can be achieved from (the meeting) if both sides don't come bearing concessions, and pretty significant ones from Greece's perspective."
The CAC 40 in Paris climbed 0.25% to 5 016.90 points and Frankfurt the DAX 30 rose 0.40% to 11 374.18. The euro slid to $1.1123 from $1.1152 late on Tuesday.
The OECD on Wednesday chopped its forecasts and now sees the global economy growing by 3.1% this year instead of the 4.0% it predicted just over two months ago.
It slashed its forecast this year for the US economy, to 2.0% from 3.1%, although it held the outlook for the eurozone at 2.1%.
Meanwhile Greek Prime Minister Alexis Tsipras was headed to Brussels on Wednesday for make-or-break talks with EU Commission president Jean-Claude Juncker to reach a deal to unlock €7.2bn to help Athens make a critical repayment on Friday.
But months of fractious talks have failed to produce an agreement as the EU, IMF and ECB insist that Athens undertake greater reforms to get the bailout money, which Greece's anti-austerity government has refused to match.
Without a deal by the end of this week, fears are growing that Greece could default, possibly setting off a chain reaction that could end with a messy exit from the eurozone and cause havoc to the economy in Europe and the world.
Senior Market Analyst Craig Erlam at currency trading company Oanda said he fails "to see what can be achieved from (the meeting) if both sides don't come bearing concessions, and pretty significant ones from Greece's perspective."
No comments:
Post a Comment