German ZEW offered mixed result overall - TDS

Research Team at TDS, suggests that the main datapoint this morning was the German ZEW index for May and the current situation rose from 47.7 to 53.1 (mkt 49.0) while expectations fell from 11.2 to 6.4 (mkt 12.0), leaving a mixed result overall.

Key Quotes

“There will also be some focus on Greece today, as it should be the top of the agenda at today’s Eurogroup meeting. Greece did manage to pass legislation over the weekend approving a new batch of austerity measures, which should unlock its latest tranche of funding.

The bigger and more contentious topic of conversation will likely be debt relief for Greece, with the IMF having proposed extending grace periods until 2040 and loan maturities until 2080. But Eurozone countries, and Germany in particular, do not yet seem prepared to talk about outright debt relief so we don’t expect any major announcements from today’s meetings.”