Renewed Optimism in Europe
Optimism is back in the markets this morning, and there is hope that the latest Greek government proposal will work out. Whereas previous versions seemed devoid of real reforms, stakeholders are positive about the review of early retirement conditions, as well as new income tax measures. Despite warnings from eurozone finance ministers against jumping to conclusions, European stock markets are flashing green this morning, and everything points to North American markets following suit at the opening.
Today’s main economic indicators will be from the U.S., starting with the Chicago Fed National Activity Index at 8:30 a.m. (May), with markets forecasting a return to positive territory, bringing the index at 0.16 whereas it had been at -0.15 for the previous month. At 10 a.m. we will be monitoring Existing Home Sales (May), with markets forecasting a 4.8% rise in sales, translating into a more favourable economic outlook for households.
