European markets are set to open higher despite the fact there is some serious standoff taking place between Greece and its creditors. However, investors at the same time are more focused towards the ECB’s QE and this is driving most of the trading action. This is the first time that the European Central Bank has done the US style quantitative easing. Hopes are extremely high that this will kick start the growth and pull those struggling economies in the euro zone out of their misery.
In terms of economic data, we have the industrial production numbers which are due this morning. France and Italy will be under the spot light today and the expectations are that these numbers may be weaker. France may see a much deeper decline in their industrial production number as compared to Italy as the progress so far by the French government has been very poor. The forecast for france is for -0.2% while for Italy it is 0.2%.
But what will make the headlines today once again perhaps may be the situation on Greece. The European finance minister are eager and desperate to resolve the situation but just not at their cost and they want Greece to hold its end of bargain by sticking to all the promises which they made. The finance minister of Greece is already called a game theory expert and the stand off between Greece and its creditors is very much down to his abilities to resolve them.
The fact remain that even if Greece is pushed out of the eurozone, it’s public still have rights to work in other eurozone economies and perhaps this is the main point which the defence minister highlighted yesterday.