Markets Overnight:
US markets were closed yesterday and in Europe markets were up on hopes of a Greece bailout deal and China cutting its reserve ratio requirements. Locally we were square with market players anxiously awaiting news on the Greek bailout package. Today, however, we can expect to see green as Eurozone finance officials FINALLY sealed a second bailout for Greece this morning after yet another marathon meeting. With the new measures in place Greece’s debt is expected to be reduced to 120.5% of GDP by 2020, with private bondholders accepting bigger losses to help plug the funding gap. This deal would hopefully end months of uncertainty in the Eurozone and restore confidence in a still fragile market.
Company News:
Construction group WBHO’s (WBO) earnings dropped by 8.6% for the six months to December 2011, while Implats (IMP) expressed their concern by comments from Zimbabwe’s empowerment minister that suggested they should sell their stake in the local platinum miner Mimosa to Aquarius.
Today:
Yet again there is not too much significant data to look out for today. Data from abroad include Europe’s consumer confidence and UK’s public sector net borrowing. Locally there are quite a few companies reporting including some of the bigger names Shoprite (SHP) and AECI (AFE).
Today the risk (if you may call it that) is definitely on the upside. We expect markets across the world to run today on the positive news from Greece.
