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    European markets higher while another deadline due for Greece

    European markets are trading higher on the first trading day of the week after not being able to produce as stellar performance as the US markets did, last week. The S&P 500, set another record high last week in the U.S. as investors have started to price in the possibility of rate hike is not going to take place any time soon- at least not in June 2015.

    Greece loves staying in the headlines and the country has narrowly avoided the default last week by taping in its IMF cash fund reserve which enabled them to pay their bill. But, the reality is that the country’s cash situation is extremely strapped and it is really scrapping the bottom of their treasure chest to find cash. Now the new deadline is due on coming Friday and once again the hopes are that the country will be able to strike a deal with its creditors to unleash some cash.

    It will be interesting to see if the country will be able to take a step back on its promises which they made during the election period and it was only these promises which enabled the current government to win the elections. Now, the same promises are causing much trouble and without Greece rolling back or taking a step back, the pace of deposit outflow will continue in the country.

    This week we have raft of economic data due and much of the attention will be focused towards the central bank communications but before that we have the inflation data in the Eurozone which investors will dissect. The main question will be how much the ECB QE is making the impact on the Eurozone inflation data. We also have the German ZEW, German PMI and the French PMI data this week which will provide the picture about the health of these economies. As for the UK, the inflationary data will confirm where exactly we are sitting on the inflation scale and the probability is that we may have actually slipped in the deflation ditch.

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