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    European markets higher; Greece and Carney in focus

    European markets are trading slightly higher this morning after posting another record highs yesterday. The DAX and the FTSE 100 index are mainly in the headlines and have been performing extremely well. It seems like that Europe may be  the place for this year if you are looking for high returns and with Central European bank initiating the full blown quantitative easing program in March, sky could be the limit.

    The German GDP data released this morning has matched the forecast of 0.7% and also the previous reading and going forward with lower oil prices and more help from the ECB, could provide more tail wind for the German economy.

    Although Greece is not dominating the headlines with the same intensity as last week however, Mr Tsipras is facing tough time this week who without any doubts promised way too more as compared to reality. Given where we stand today, it is almost certain that disappointment is inevitable for his party. Nevertheless, there is no gain without any pain, but for Greece, pain equation is much heavier at least for now.

    The officials from Greece have put the ball in motion by submitting their final draft of reforms to EU officials late last night and the ball is in a different court. The draft is mainly focused on Greece’s ability to achieve what is possible in reality and have demanded the reduction in the budget surplus from 3% and this will help them the issue of poverty which nearly 300,000 people are facing. But to make matters more efficient, Greek government also need to address the corruption and close all the loopholes which leads to public not paying the correct amount of tax.

    Back in the UK, the focus will remain towards the extreme low reading of CPI and its implication on the economy. Mr Carney may not face tough time in explaining why the inflation is so low, as it is good for the UK if wage growth is outstripping the inflation because this means more spending and more growth.

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