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UK 100 +10pts after modest gains in US markets fuelled by optimism some sort of agreement would emerge from Greece and investors expected announcement from Greek PM. As has been the case several times, nothing came to fruition and low trading volumes suggested lots of market participants playing wait-and-see before jumping in, and ahead of ECB rate decision tomorrow. Overnight, Asian markets positive after Japanese stocks rose above 9,000 on Greek deal optimism, Toyota raised forecasts, Japanese Eco watchers outlook improved and speculation grew Chinese inflation would slow, easing pressure on monetary policy. Results from BHP Billiton show rare drop in earnings, missing consensus by a fraction, while Reckitt Benckiser beat its consensus. German data showed decline in Exports, offset by similar drop in imports trade balance narrowed. Gold back up at $1750/oz as US dollar weakened on Bernanke’s talk yesterday of US unemployment being understated raising expectations for more QE3.
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