Global macro overview for 10/07/2015
New developments and sudden change of plans of Greek Prime Minister Tsipras with his new bailout proposal surprised the markets. A new deal with EU is a major change in terms on negotiations with creditors. The bailout is worth over 53.3 billion now and neglects everything the Greek people voted in Sunday's referendum. The main and very attractive changes are: debt restructuring, 35 billion investment plan (aka "Marshal Plan" for Greece), 3-year (instead of 5 months) proposal.
The market's response to the Greek news is positive, so the EUR/USD pair is climbing higher from the level of 1.0990 to the resistance at the level of 1.1133. European stocks opened with a gap up and peripheral spreads plunge :10-year Portugal risk premium over 10-year Bunds drops below 200bps, 10-year Bund yields jump 8bps while 10-year Italian yields drop by 13bps.
What to pay attention over the weekend (all times BST):
2pmBST Eurogroup to discuss Greece's proposals
3pmBST Eurozone summit
5pmBST EU Summit