17 Feb 2015
Risk appetite poised to deflate after Eurogroup-Greece fiasco – Danske Bank
FXStreet (Edinburgh) - Kasper Kirkegaard, Chief Analyst at Danske Bank, sees the risk-on trade losing impetus following yesterday’s unexpected setback.
Key Quotes
“Following Greece’s objections to the bailout extension at yesterday’s Eurogroup meeting we expect risk sentiment to be a bit subdued in today’s session”.
“Markets have in the past couple of sessions traded more confidently of an imminent Greek solution and although further negotiations are likely to take place over the coming days, markets will most likely take back the recent gains e.g. Spain and Italy’s spreads to Germany have tightened 10bp since Thursday and swap spreads have tightened”.
“That said, potential spillovers remain limited and we expect peripheral spreads to set new post-crisis lows with the upcoming ECB QE programme”.
Key Quotes
“Following Greece’s objections to the bailout extension at yesterday’s Eurogroup meeting we expect risk sentiment to be a bit subdued in today’s session”.
“Markets have in the past couple of sessions traded more confidently of an imminent Greek solution and although further negotiations are likely to take place over the coming days, markets will most likely take back the recent gains e.g. Spain and Italy’s spreads to Germany have tightened 10bp since Thursday and swap spreads have tightened”.
“That said, potential spillovers remain limited and we expect peripheral spreads to set new post-crisis lows with the upcoming ECB QE programme”.