EU Open Report - 1.7.2015

Welcome to July Trading! Reminder: today is a Holiday in Canada, Hong Kong and Nzd.

So where are we on Greece? Going nowhere fast. They MAY suspend the referendum if talks restart between Greece and Creditors...but for now there's a 50/50 chance of a NO vote. The IMF confirmed that Greece di not make it's payment yesterday, and has requested and delay in payments.

In other news, the Japanese Tankan beat expectations which is JPY-positive and it extends the recent string of improved data flow in Japan. However, it's difficult to see domestic trends overpowering Greece in the mind of market participants. As usual, so long as the markets feed off Risk On/Off, the Jpy pairs will be at the mercy of it.

Canadian GDP  disappointed and saw CAD trade sharply lower. 

1. Who Said What

-  China Final June HSBC/Markit Mfg PMI at 49.4 (Vs Flash 49.6, May 49.2), Fourth Month of Contraction;  China June services PMI rises to 53.8 from 53.2 in May; China June Official Mfg PMI at 50.2 (Reuters Poll 50.3) Vs 50.2 in May

-  Japan Final June Mfg PMI 50.1 Vs Flash 49.9, Final 50.9 in May

- Australia May Building Approvals +2.4% M/M, S/Adj (Reuters Poll +1.0%)

-  IMF confirms Greece does not make 1.5bln Euro Repayment to the Fund; says Received Greece Request for Extension of Repayment; says Board will consider Greek Request for Extension in Due Course

-  BOJ Tankan: June Big Manufacturers Index +15 (Reuters Poll: +12)

-  Fed’s Bullard: Fed Rate Hike “Very much in play for September” though will be on the table in July as well

2. Calendar (CET time)

Source: Investing.com

3. Asian Equity & FX Roundup

Asian equities rose following attempts from Greece to reinstate talks with creditors. Nikkei was up 0.3% also aided by the Tankan survey; Shanghai marginally lower -0.4% on the latest PMIs; Hang Send Closed; ASX200 up 0,45% 

In FX, the only thing worth noticing is a marginal bid tone for the USD as we approach Europe.

Also worth noting that global equities remain subdued but yeserday was a neutral day...not the best situation to get stuck in.

Good Luck!