Markets are still under pressure on growing fears of a Greek default and the seeming inability of the relevant authorities to sustain a rescue package, but a bunch of better than expected US data has given investors a glimmer of hope.
Apart from Greece, there have been growing concerns about a slowdown in China and also the US. But figures just out from across the Atlantic show US weekly jobless claims fell to 414,000 last week from 430,000, and better than the expected 420,000. The US current account deficit for the first quarter was $119.27bn, compared to forecasts of $126bn, and May housing starts were up 3.5% after an 8.8% fall in April. Just a chink of daylight in the gloom but enough to bring markets off their worst levels.
The FTSE 100, down as low as 5644 at one point, is now off 84.04 points at 5658.51. The US futures have improved from a forecast opening decline on the Dow Jones Industrial Average of 61 points to 38 points, following the figures. But there is no doubt the nerves are still out there, and will be until the Greek issue is resolved. The more people compare the current situation to the demise of Lehman Brothers, the greater the anxiety becomes.
