Markets are relatively sanguine over the Greek debt crisis, as they hope for a last-minute deal between Greece and its creditors this weekend. Jasper Lawler, a market analyst at CMC Markets, said there is still a general belief that a deal can get done at the 11th hour. But if there is not a deal and Greece misses its June 30th payment to the International Market Fund, ‘it may be slightly different than say if they miss a payment to a private bondholder, that’s an automatic default,’ he explained. ‘In this case it’s the IMF. Officially Greece will fall into arrears, but that doesn’t necessarily mean that there’s going to be a mass run on the banks in Greece.’ Lawler also pointed out that equity markets also have a floor under them, thanks to the quantitative easing program for the ECB. ‘We do have this massive Central Bank stimulus behind us in Europe and that obviously caused massive gains in equities in the early part of the year,’ he said. ‘But at the moment, there just isn’t quite that stimulus needed to move on or make new highs, and Greece is a large part of that.’ Lawler said markets won’t be able to push higher until the current Greek crisis is resolved, one way or another.
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