Thursday, 02 July 2015 17:56
LONDON: Europe’s main stock markets steadied on Thursday as attention turned to US jobs data ahead of Greece’s weekend referendum on it bailout.
Frankfurt’s DAX 30 dipped 0.06 percent to 11,173.89 points and in Paris the CAC 40 lost 0.10 percent in value to stand at 4,878.37 in midday deals.
Outside the eurozone, London’s FTSE 100 index edged up 0.15 percent to 6,618.56 points compared with Wednesday’s close.
In a volatile week’s trading, European stock markets rebounded on Wednesday as Greece proposed a reworked deal on its bailout that was closer to the position of its creditors.
On Thursday, the euro rose to $ 1.1075 from $ 1.1053 late in New York on Wednesday.
Greece’s radical left government suggested it would resign if it fails to get its way in a referendum Sunday that could decide the country’s financial future.
Although Athens insists the referendum is narrowly on tough austerity conditions attached to a bailout that expired on Tuesday, EU leaders say it is a vote on whether Greece wants to remain in the euro.
International creditors and markets are stepping back after days of dizzying drama over the Greek crisis to watch the outcome of the consultation at the weekend.
The Athens stock market meanwhile remains shut, while the Greek population is left in financial limbo under capital controls imposed all this week to stem a bank run. They are limited to 60-euro ($ 67) daily ATM withdrawal caps, adding hardship to lives already ground down by years of austerity.
— US jobs —
Ahead of the Greek vote, attention was focused on the US jobs report due Thursday.
“The non-farm payrolls report provides a welcome distraction from Greece,” said David Madden, market analyst at IG trading group.
“Greece may be out of the spotlight for the time being, but it should not be forgotten, and this weekend could be the end of the line for Greece and the euro,” he added.
The payrolls report is expected to back up views that the economy is gaining strength.
The figures will also firm expectations that the Federal Reserve will raise interest rates, possibly in September.
“The main focus for the markets today is the US jobs report, closely followed by any developments in Greece,” said Phil McHugh, trading floor manager at Currencies Direct.
“A strong number should translate into a stronger US dollar as momentum picks up towards a US rate rise.”
Asian stock markets closed higher Thursday on hopes for a deal to keep Greece in the eurozone, but Shanghai tumbled again despite authorities relaxing trading rules to temper recent volatility.
