Greece on brink of securing deal

News came early Tuesday morning that Greece had submitted a reform plan minutes before the deadline, now markets are watching to see if European officials approve it and consequently the extension to the Greek bailout.

Sentiment has certainly been lifted by the conditional deal, with world shares holding near all-time highs and European bourses trading around opening levels. Current chatter points towards a favourable outcome of the decision, which would grant Greece a four-month bailout extension, as the list of reforms is being cited as comprehensive and sensible.

Dan Davies of Frontline Analysts notes that the Greek government has come to a compromise in some key areas, with one of the more important being the much disputed labour reforms. Further ground was given on the issues of minimum wages and pension pots.

“My first impression is they are quite positive,” said Jeroen Dijsselbloem, the Dutch finance minister.

The reform package will be discussed further today and a decision will be forthcoming shortly after.

Britain’s top 100 share index is creeping higher once more as better than expected results from the mining company, BHP Billiton, helped the FTSE stay within reach of its all-time high from 1999. Market movers will be looking to break above this psychologically significant level, which lies around 6,950.

Gold continues to slump as safe-haven demand abates, likely due to the near agreed upon bailout extension for Greece as well as a strengthening US economy. The yellow metal’s price has declined to a seven-week low as US Fedspeak continues to point towards an interest rate hike in the near future.

Brent crude oil has found a range below the $60 per barrel handle after a series of data heightened worries over the global supply glut. A strong US dollar continues to dampen demand while oil producers refuse to cut current levels of production, indeed some are even looking to ramp up output, which should continue to weigh on prices of the black gold.