European stock markets today decided to go with the optimists who think a Greek debt deal is likely. Stocks in Athens for example rose a big 5.61%. Looking at the fine print in yesterday’s decision by the European Central Bank to extend an additional 5 billion euros in loans to Greek banks, however, I’d have to side with the pessimists.
Following a meeting with the German finance minister, the new Greek finance minister said that the two sides hadn’t even been able to agree on where they disagreed
The European Central Bank upped the pressure on Greece today. The goal seems to be to get the new Syriza government to back off on its call to renegotiate Greece’s bailout package.
So which is the scarier news?
The U.S. economy grew at a 2.6% rate in the fourth quarter of 2014. That was down from the 5% increase in the third quarter. Inflation in the EuroZone fell to an annual negative 0.6% in January–that’s deflation folks.
Germany and its austerity allies in the Netherlands and Finland have fired warning shots designed to head off any effort by the new Greek government of Alex Tsipras to reverse budget cuts and other measures initially put in place to win the 240 billion euro ($270 billion) bailout program for Greece.
European stocks outside Athens shrugged off Sunday’s election victory in Greece by the Syriza party. Syriza has promised to reverse major parts of the austerity program imposed by the country’s creditors. That’s going to put the country on a collision course with Germany and other fiscal hardliners worried that any relaxation of the terms of the Greek bailout package will lead to backsliding on crucial economic reforms
European stocks move up on the central bank’s news and the euro hits an 11-year low against the U.S. dollar
It’s all euros on deck ahead of the Thursday, January 22, anticipated announcement of asset purchases from the European Central Bank. And on Sunday Greek voters go to the polls
