Markets hold steady ahead of second round of Greek-Eurozone talksComments Off on Markets hold steady ahead of second round of Greek-Eurozone talks
Fresh talks between the two parties were due to kick off in Brussels at 2pm and were expected to last until the early hours of Tuesday.
Greece’s left-wing Syriza party, which won Greece’s parliamentary elections last month, have pledged to scrap austerity measures imposed under Greece’s international bailouts.
But Germany and other eurozone countries say Athens must honour its commitments.
A first attempt to broker an agreement ended in stalemate last week. The two sides even failed to agree on a joint statement following seven hours of discussions.
Nonetheless, investors appeared calm ahead of the second round of talks, with European stock markets moving only slightly lower in morning trading.
“The default setting for most investors today is ‘sit on your hands’, and await developments,” said Chris Beauchamp, senior market analyst at IG.
However, German finance minister Wolfgang Schaeuble, one of the key players in the talks cast doubt on the potential for a deal, saying in a radio interview he was “very sceptical” about the talks.
Susanne Galler, a strategist with Jefferies in London, said things could quickly turn sour if there was no deal reached during the latest discussions.
“The market consensus is for them to do a deal by the end of this week. But we think that if there’s no deal today and the clock starts ticking then the euro will look increasingly vulnerable.”
Additional reporting by Reuters