Morning Briefing: Greece dominates markets; Oil rebounds

Morning Briefing: Greece dominates markets; Oil rebounds

Morning Briefing: Greece dominates markets; Oil rebounds Greece dominates markets; Oil rebounds
Greece has another chance to recover from its disastrous debt situation Tuesday as Eurozone finance ministers call for the country’s leaders to come up with a serious and credible proposal. Markets are nervous about the potential fallout if a new deal cannot be agreed. Wall Street is expected to see a higher start to the day’s trading after North American markets managed to claw back much of the intraday losses Monday. Asian indexes closed mixed Tuesday with Japan and Australia gaining while mainland China was weaker on doubts over the recently announced support measures for its economy. European markets are lower so far.

US stock futures are trending higher. Oil is trending higher (Brent $57.32, WTI $53.13 at 6.30am ET). Gold is trending lower.
 
Today’s data
International trade at 8.30am ET
JOLTS at 10am ET
Consumer credit at 3pm ET
Computer Science, Kollagenx Corp and Taylor Consulting are among the companies reporting earnings today.
 
Oil rebounds but outlook is weak
Oil prices have rebounded from their losses over the last few days but the outlook is weak. Reuters reports that a 6 per cent drop Monday has been followed by higher prices overnight but that analysts are predicting a downward trend. Consultancy FGE Energy says that oversupply is running at 1 million barrels a day and if an Iran deal is reached there will be an increased glut especially as weakness in Greece and China is likely to see demand decrease.
 
Saudi Arabia to put $10 billion into Russian economy
CNBC reports that Saudi Arabia and Russia are rebuilding their frosty relationship with news that the Saudi’s are investing $10 billion in Russia over the next five years. The funds will come from the Saudi’s sovereign wealth investment vehicle and will be invested in Russia’s government run development fund.
 
Starbucks makes another price increase
US branches of Starbucks will be charging an extra 5 to 20 cents for beverages from Tuesday despite an 18 per cent increase in profits. The coffee firm has recently pledged additional support for employees and the rise in the cost to consumers could be helping to fund additional wage and education initiatives.