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Morning Brief

Opening calls are indicating a flat to lower open in Europe. The debt crisis still looms on Europe and there is mixed feelings among EU nations how this should be tackled. This is creating uncertainty to the markets. There are also diverse opinions of whether Greece will be able to stay in the Euro, and various analysts are now suggesting that Greece’s chance of leaving the euro is now bigger. However, nation leaders seem to insist that Greece should stay in the euro both for the benefit of Greece itself and for the benefit of the euro nations.

In Asia, shares are trading slightly higher, with a spill over from US markets. Again, the European debt crisis looms over the markets. Apart from this, yesterday there were rumours stating that Chinese banks may not meet their lending target which obviously does not give an indication of growth.

In the US, markets started lower but ended the session flat. Yesterday, the US released a PMI figure of 54, which in theory shows an expansion, however this was lower than the April figure of 54. Statements made by Monti, that Eurobonds are not far off from becoming a reality helped the US markets to erase some losses. The University of Michigan Confidence index is expected to be released today at the 77.8 level.