Weak Start Of The Second Quarter In Europe, Russia May Help Greece
After the incredible first three months of 2015, the European sell-off on Tuesday has been almost completely altered as investors took profits at the end of the quarter. The first day of the second quarter is commonly a great day in the stock markets, but this time, the early indications have shown, this might not be the case. The first day of trading in the second quarter usually is more aggressive, with the profit taking at the quarter end, which is somewhat expected.
The investors have ignored the trend of more active approach, as the European features find themselves in the red, and greatly so. This position of the European features has warned the investors of possible upcoming turbulence in the market. The decisive factor is surely the Greek failure to reach an agreement with the lenders, as the latest proposed reform list was dubbed as nothing more than a list of ideas. The investors are still waiting on Athens to provide them with a convincing a credible list of reforms, in order to release the necessary funds. All the propositions of the Greek Prime Minister Alexis Tsipras were insufficient and unacceptable for the creditors. The Eurozone is becoming increasingly worried with the delay of the agreement and the Greek government is under scrutiny.
The negotiations are important to the lenders too, as we are getting closer to April 9th, when Greece must repay the International Monetary Fund, with the amount of 450 million Euros, which could result in Athens defaulting on its debts. Russia may provide the official Athens with a loan or an alternative as the officials of the two countries meet on April 8th. This would be an additional blow to the European creditors, giving the poor relations between European Union and the Russian Federation recently.