On the 23 June 2016 of UK voted to leave European Union (EU) however the country did not triggered the EU Article 50 that sets out the procedures and time limit that would oversee an exit from the EU and is the only legal way to leave the union. Yet, it has not yet been used and so is completely untested.
The Bank of England (BoE) announces that is preparing a big package of measures to support the UK post-Brexit economy, highlighting the need for a swift and robust response to the uncertainty.
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Greece refuses to accept the hard-line taken by the IMF, which requires long-term solutions rather than short-term measures. The lenders proposed a primary surplus (government revenues minus expenses, excluding interest on the public debt) of 3.5% of GDP by 2018, which was accepted by Greece although the market doubt put into effect. Creditors proposed cuts in reforms in the amount of 1.8 billion euros in 2016 and 2017, to which the Greek government countered with a cut of 1.9 billion euros only in 2016.
Greece has one of the lowest VAT rates in the European Union. Lenders want a standard VAT of 23%, with few exceptions, while Greece wants a structure with three levels: 6%, 13% and 23%. The Greek newspaper Ekathimerini advanced that the EU and the IMF have proposed an increase in VAT on tourist accommodation from 6.5% to 23% and an increase in VAT on the restaurants from 13% to 23%, to be introduced on the 1st of July, intensifying fears about the adverse impact on tourism.
Tuesday, June 30: Is the deadline to comply with all payments to the IMF of around 1.54 billion euros. If Greece fails to pay, Christine Lagarde, head of the IMF, said that refusing the possibility of a grace period. In addition, Greece needs to pay 1.5 billion euros in salaries and reforms by the end of June.
Wednesday, July 1: ECB decision on the Emergency Liquidity Assistance (ELA), which can be crucial in this process because of the lack of liquidity of Greek banks.
Monday, July 20: Payment to the ECB of € 700 million in interest and EUR 3.5 billion in reimbursed capital.
This weekend the two most Easter regions of Ukraine, Donetsk and Luhansk, voted in a referendum for independence.
Voters in Donetsk voted 89.7% in favour of independence whilst there was no immediate word on results from Luhansk. Pro-Russian groups hailed a large majority in favour of secession in a referendum that was condemned as illegitimate by Ukraine and western countries including France, Germany and Britain, with France and a Germany warning of further sanctions against Russia. Further reports also suggested that at least one person was killed by armed men loyal to Ukraine’s government.
The moon is seen as it begins a total lunar eclipse that will turn the moon red over Buenos Aires April 15, 2014.
Yesterday, stocks staged a bit of a rally, bouncing back from heavy selling in the previous week.
Today? Things are just looking so so. After being up more than 1%, Japan rose just 0.6%.
China tumbled another 1.4% last night.
Europe is in the red, with Germany’s DAX index down 0.34% and the British FTSE 100 off 0.1%.
These aren’t dramatic moves, but there’s not showing any impressive bounceback of follow through.
US futures are basically flat.
Not helping things is news that the Ukrainian acting President says that military operations have begun in the Eastern part of the country to crack down on pro-Russian rebels.
Also, money supply data out of China was weak.
Read more: http://www.businessinsider.com/morning-markets-april-15-2014-4#ixzz2ywYgOdff
Gold jumped today after more dovish than expected FOMC minutes from last month from Fed chair with no mentions that for the first rate rise after the end of QE is around 6 months.
GOLD is a CFD written over XAU/USD futures provided by ActivTrades.