WORLD ECONOMIC & MARKET DEVELOPMENTS
GLOBAL MARKETS: Reacting relatively calm ahead of Sunday’s referendum in Greece, the majority of global equity markets moved modestly higher on Thursday. In a similar tone, most of EMU sovereign debt spreads undertook some narrowing for the second session in a row, while yields of US Treasuries and German government bonds hit multi-session highs affected by a fresh string of positive US data y-day. In FX markets, the USD was among the main outperformers ahead of the US non-farm payrolls report for June due for release later in the day.
GREECE: In a televised address to the nation y-day, Prime Minister Alexis Tsipras urged citizens to vote “No” in the July 5 referendum and accused official creditors of instigating the closure of domestic banks so as to blackmail the Greek people. Shortly after, Eurogroup President Jeroen Dijsselbloem was quoted saying that he “sees little chance of progress” on Greece after Mr. Tsipras’s earlier televised address. In a letter sent to the Greek Prime Minister, the Eurogroup President reportedly said that “we will come back to your request for financial stability support from the ESM only after and on the basis of the outcome of the referendum”.
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