Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Pre-Market Primer: Markets Await Greek Election Results


This weekend will see a G20 meeting in Mexico and an apocalyptic vote in Greece.

MINYANVILLE ORIGINAL US stock futures rose this morning ahead of consumer sentiment and industrial production data releases.

G20 officials told Reuters that central banks from several countries will take coordinated action to stabilize the markets and provide liquidity in case the Greek election results in further turmoil. European Union leaders will also unveil plans to further integrate fiscal and monetary policy across the 27-member union at a summit in Brussels later this month.

The Bank of England's Mervyn King announced an emergency "funding for lending" scheme that will pump five billion pounds per month into British banks to improve liquidity.

Officials from the 20 most important economies will meet in Los Cabos, Mexico this weekend, where the possible Greek exit from the eurozone will surely be a key issue. On Sunday, Greeks will go to the polls again after choosing a divided parliament. Most Greeks are against the harsh austerity measures imposed on it by the terms of its most recent bailout deal with international creditors. The only other point on which Greeks will mostly agree is that they want to stay in the eurozone. If anti-bailout parties win, they might end up with drachmas; sticking to the plan won't be much better. Greek opinion polls are inconclusive at this point.

Trading volume has been somewhat thin this week, as investors await the results of the Greek election. European and Asian indices turned positive today, as did US stock futures. Dow (^DJI) futures rose 0.20% to 12,631.00. S&P 500 (SPY) futures gained 0.08% to 1,327.30 and Nasdaq (^IXIC) futures are up 0.18% at 2,539.50.

Consumer sentiment weakened this month, according to economists' estimates of the Reuters/University of Michigan index, which will come out today at 9:55 a.m. EDT. Industrial production from April to May is expected to have flatlined.

Microsoft (MSFT) will acquire Yammer for $1.2 billion, sources told the Wall Street Journal. Yammer is a social network for use within companies, with functions similar to Facebook (FB) and Dropbox.

Moody's downgraded five Dutch banks, including ING Groep (ING), citing the likelihood of fallout from a possible Greek exit from the eurozone and falling house prices in the country.

Dell (DELL) was the "strategic bidder" for in a bidding war for Quest Software (QSFT). Dell offered $2.5 billion for the company, beating out Insight Venture Partners, a private investment firm.

Twitter: @vincent_trivett

No positions in stocks mentioned.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Featured Videos