Solid economic growth, but Greece’s default looms
WEEKLY MARKET COMMENTARY |
Several first-tier economics releases will be published this week probably showing strong job growth, a rebound in manufacturing, robust auto sales and solid consumer spending. There will also be policy discussions on the radar from four central bankers, including New York Federal Reserve President William Dudley who will talk about economic and monetary policy on Friday.
In Europe the situation is increasingly dire. Although there are tentative signs of growth, albeit sluggish, in the eurozone, the growing probability of a Greek default will hang over this week's European Central Bank (ECB) policy meeting. With the rapidly approaching July 20 deadline for Greece's repayment of €3.5 billion euros to the ECB, a non-payment would result in default and set the conditions for that country's possible exit from the eurozone.
Mario Draghi's press conference after the publication of the ECB policy communiqué on Wednesday promises to eclipse even the release of the May U.S. non-farm payroll estimate as the possible major market-moving event of the week.