The Proverbial Greek "Can" Has Been Kicked Down The Road Once Again

They sure made it seem like a "nail-biter", but as we had suggested (June 24 blog) the Euro needs the weakness that Greece gives it for the purposes of euro area exporting countries' economic recovery (cheap Euro makes export prices more attractive).

Assuming all the necessary parliamentary ratification takes place, hopefully we can put this to bed for a while and move on with more important matters and our 2015 themes:

Expect The Unexpected.

• Canadian Labour Force data announced last Friday showed little change.
• June showed gains of 65,000 in full-time work, offset by losses of 71,000 in part-time work.
• Provincially employment fell in Quebec and New Brunswick and increased in BC and Newfoundland
• Public sector employment increased, self-employment and private sector employment were little changed.

On Tap for this week:

 

BOC bank rate announcement on Wednesday: it's 50-50 among the experts for a 1/4% rate cut.

• I would suggest the BOC plays wait and see on future economic data, given that the core inflation rate is close to target.

Also:

• US Retail Sales data for June on Tuesday will challenge our theme that the consumer is becoming less of a factor in the US economy (expected to have grown by .3%).
• China will announce its GDP data for Q2 (expected at a 6.9% annualized growth rate).
• More inflation data for Canada, the US and the Euro area as the week progresses.
• More S&P 500 company Q2 earnings: 42 companies will report. Of the 26 that reported last week, 16 beat the mean estimate.

www.highrockcapital.ca