Eurozone: Mounting worries over Greece, Portugal and Spain – Swissquote

FXStreet (Delhi) – Peter Rosenstreich, Head of Market Strategy at Swissquote Bank, notes that the Weakness in Euro area rates and equities continue on mounting worries over Greece, Portugal and Spain.

Key Quotes

“Yesterday’s dispute between Athens and creditors will delay the disbursement of Greece next €2.15bn aid tranche. In Spain, Catalan separatist lawmakers approved a resolution that builds a foundation for separation from the rest of Spain. While in Portugal, Socialist Party with the Communist Party and the radical Left Bloc left-wing parties approved a strategy to expel PM Coelho’s administration. Portugal’s yield curves continue to steepen with 10-years yields rising 15bps.”

“We suspect that political instability and its possibility to derail Europe’s fragile growth is likely to force the ECB into action. Overall, we expect the ECB to extend the asset purchased program and cut the deposit rate 10bpt to -0.30%.”