European Markets Closed in Positive Territory Wednesday 27th April

Toronto, Canada, April 28, 2016 (Newswire.com) - Mitcham Associates

European Markets Closed in Positive Territory Wednesday 27th April

As Greek ministers called for the emergency meeting, Donald Tusk, the head of the Eurozone Council said that EU Finance ministers need to continue the meeting held last week where the decision fir further lending was still left open.

Brian Murray, PR Manager

The major indices in Europe closed higher yesterday as the EU rejected an emergency summit called by Greece.

After agreeing a huge €80bn bailout, there are now concerns that Greece will be able to make its debt payment in July unless it receives its next tranche of bailout funds.

As Greek ministers called for the emergency meeting, Donald Tusk, the head of the Eurozone Council said that EU Finance ministers need to continue the meeting held last week where the decision fir further lending was still left open.

With the IMF expressing concerns over the ability of Greece to implement the austerity measure required to meet the bailout terms it could be that the Greeks are on the cusp of a bailout default. Both the ECB and IMF are calling for more stringent measures from the Greek government however with the new liberal government in charge, they are sticking to their guns and refusing to make further cuts outside of the agreed terms.

If a default is coming, the state of the EU and its current deflation scenario would struggle to improve. Further lending to Greece would be hard to secure as the German Finance Minister is already calling for more austerity and the possibility that no more bailout funds would be provided.

The climate in Europe is chilly at the moment. A referendum in the UK on whether to leave the EU, Italy shoring up its big banks and Greece once again in financial trouble only spell a rocky road ahead for the European Union.

Major European Index Closes 27th April:

FTSE 100 6,319.91 +35.39 (+0.16%)

DAX 10,299.83 +40.24 (+0.39%)

CAC 4,559.40 +26.22 (+0.58%)

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Source: Mitcham Associates