Morning MoneyBeat Europe : Can The Fed Wrest Attention From Greece

        By David Cottle
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        The Breakfast Briefing
        Good morning Europe.
        Local stocks are expected to gain slightly at the open as investors look toward the Federal Reserve's monetary policy meeting, perhaps the only thing which can at least momentarily displace Greece at the top of their in-trays.
        The Fed isn't expected to increase interest rates this time around, so any steer as to when it might do so will as ever be at a premium. The U.S. economy offers the combination of a strengthening job market and docile inflation, which may leave the central bank in no hurry, especially given the possibility of market displacement thanks to Greece.
        That story has taken no new turns overnight, but Athens and its creditors are almost at the level of exchanging insults, so hopes for a deal are extremely dim.
        The U.K. will likely get some early focus as its labor market statistics will be released. Stronger wage growth might see bets on an interest rate increase ramped up, at the moment futures markets don't flag one this year
        Market Snapshot: U.S. markets (Tuesday close) DJIA up 0.6%, Nasdaq up 0.5%, S&P 500 up 0.6%. Nikkei now down 0.2%. Brent crude up four cents at $63.74. Gold down $2.10 at $1.118.70. EUR/USD at $1.1254, USD/JPY at Yen123.54. 10 year Treasury yields 2.31%, Bund 0.80%, Gilt 2%.
        Watch For:UK labor market numbers (8:30 GMT), Bank of England monetary policy meeting minutes (8:30 GMT). Federal Reserve policy meeting announcement
        What You May Have Missed on MoneyBeat:
        Five Charts That Show How Investors Are Trading This Market: Greece is on the brink and global investors know it. According to Bank of America Merrill Lynch's latest fund manager survey, fears over what might happen to the Hellenic Republic, coupled with concerns over what impact a rate increase in the U.S. might have, have encouraged investors to yank their money out of stocks, reduce their overall exposure to risk and pile up on cash.
        Fund Managers Pile Into Cash Amid Volatility: Fund managers hold more cash now than they have at any other time during the past six months amid a surge in volatility across global financial markets.
        FCA Chose Not to Chase Some Firms in FX Probe: The Financial Conduct Authority chose not to pursue all institutions involved in the foreign exchange rigging scandal, believing that targeting the worst cases would be enough to send a message of deterrence to all.
        Biotech Bonanza Shouldn't Bother GSK: Frothy markets can make a mug out of anyone. So spare a thought for GlaxoSmithKline, which has seen various drugs it ditched go on to fame and fortune in U.S. biotech.
        Bernstein Predicts Bull Market for U.S. Bank Stocks: U.S. bank stocks have been on a tear over the past few months, thanks to a spell of rising bond yields. Analysts at Bernstein say the party could continue.
        'Game Over for Greece' Says Fidelity Worldwide Investment: "It's game over for Greece." That's the blunt assessment by Fidelity Worldwide Investment's Dominic Rossi, global chief investment officer for equities, regarding the country's prospects as talks with creditors failed again and a default now appears almost a certainty.
        What Happens if Greece Misses Payments?: With little sign of progress in talks on Greece's international bailout, some European policy makers are considering whether Athens could default but stay in the eurozone. Here is a look at some of the complications.
        From The Wall Street Journal:
        Greek Leader Blasts Creditors as Clock Ticks: Greek Prime Minister Alexis Tsipras lambasted creditors for their handling of his country's debt crisis, but suggested that a coming summit of European leaders could be the decisive moment in the drawn-out negotiations.
        EU Remains At Odds Over Migrants: Interior ministers from France and Italy tried Tuesday to end a dispute over the movement of migrants from Africa and the Middle East as EU ministers continued to grapple with the overall problem facing the 28-nation bloc.
        Russia Kicks 2018 Cup Plan Into High Gear: Construction for the 2018 World Cup is gaining momentum in Moscow and cities across Russia, even as soccer's global governing body faces one of the deepest scandals in the sport's history.
        (END) Dow Jones Newswires

        June 17, 2015 02:04 ET (06:04 GMT)

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