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UK 100 called to open -10pts due to a standoff among Greece’s national unity government (understandable but nonetheless dangerous brinkmanship, with talks of technocrat PM Papademous giving the governing parties until Monday to make a their decision) regarding austerity measures demanded by international lenders who hold the purse strings for the country’s second essential bailout. This has in turn forced Eurozone finance ministers to postpone approval of said bailout, pushing it ever closer to a March 20 default, and also meant a stalling of talks between Greece and its bondholders regarding a restructuring of its debt via private sector write-downs, the Eurozone bugbear of the last couple of weeks. There may also be more pressure on the ECB to take a hit on some of its Greek debt holdings, something it has been holding out on for fear of weakening its stance regarding explicit market intervention. Confusion and positive US macro data seen Euro weaken in favour of dollar and commodities pull back as a result
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