Stock indices traded higher despite Greece's debt crisis. The International Monetary Fund (IMF) confirmed that Greece has not repaid €1.538 billion IMF loans. A Greek default would be the first by an advanced economy in the IMF's seven-decade history, putting the country on a par with countries such as Afghanistan, Haiti and Zimbabwe, which also not paid IMF loans on time.
Another Eurogroup meeting has been called for today to discuss the latest proposal from Greece. The Head of the Eurogroup Jeroen Dijsselbloem said that the Eurogroup will discuss the request for a third bailout programme only after the referendum on Sunday. He also warns that new aid programme for Greece may have tougher conditions.
Germany's Finance Minister Wolfgang Schaeuble said on Tuesday that Greece can stay in the Eurozone even if it says "No" to the bailout programme in the referendum on Sunday.
Meanwhile, the economic data from the Eurozone was solid. Eurozone's final manufacturing purchasing managers' index (PMI) rose to 52.5 in June from 52.2 in May, in line with a preliminary reading. It was the highest level since April 2014.
The Netherlands was the strongest performer.
Markit's Chief Economist Chris Williamson said that June's PMI was "representing a major improvement compared to the malaise seen at the end of last year".
Germany's final manufacturing purchasing managers' index (PMI) rose to 51.9 in June from 51.1 in May, in line with a preliminary reading.
The increase was driven by a rise in output at consumer goods producers and in output in new orders.
"The overall expansions in output and new business were, however, well below levels seen at the start of last year," Markit economist Oliver Kolodseike said.
France's final manufacturing purchasing managers' index (PMI) rose to 50.7 in June from 49.4 in May, up from the preliminary reading of 50.5. It was the first reading above 50 since April 2014.
"The French manufacturing sector edged further in the right direction during June, with output and new orders broadly stabilizing. This was reflected in firms' hiring decisions, with the rate of job shedding easing to a marginal pace," Markit economist Jack Kennedy said.
Markit Economics also released its manufacturing purchasing managers' index (PMI) for the U.K. on Wednesday. The Markit/Chartered Institute of Procurement & Supply manufacturing PMI for the U.K. decreased to 51.4 in June from 51.9 in May, missing expectations for a rise to 52.5. It was the lowest level since April 2013.
The decline was driven by declines in output and new orders.
"The UK manufacturing sector had a disappointing second quarter overall. Growth trends in output and new orders were the weakest since the opening quarter of 2013, as a strong sterling exchange rate and subdued demand from mainland Europe offset the continued solidity of the domestic market," Markit's Senior Economist Rob Dobson said.
The Bank of England Governor Mark Carney said on Wednesday that UK banks' direct exposure to Greece is very small. He noted that the economic growth in the U.K. has been solid and the burden of household debt has continued to decline.
Name Price Change Change %
FTSE 100 6,615.79 94.81 1.45 %
DAX 11,165.43 220.46 2.01 %
CAC 40 4,899.62 109.42 2.28 %