Market overview: Germany denies speculation about new Greek currency
1457: Germany's finance ministry has denied rumours cited by Bloomberg that Greece will need a new currency if talks with lenders fail. The BMF tweeted Bloomberg, saying its report is "inaccurate". "This sort of scenario is not up for debate", it said.
1330: The US consumer price index (CPI) rose 0.1% month-on-month in April, easing back from a 0.2% in March, as forecast by analysts. The Bureau of Labor Statistics said compared to a year ago the US fell further into deflation, down 0.2% year-on-year in April, as expected, following a 0.1% drop in March.
1225: US stock futures are to open lower ahead of the consumer price index which is expected to show the US fell further into inflation. Analysts predict CPI fall of 0.2% year-on-year in April, compared to the previous month’s 0.1% decline. "US futures are treading water ahead of the open as traders take cover in the run up to what could be a volatile final session before the bank holiday weekend," said Craig Erlam, senior market analyst at Oanda. "The Friday before the bank holiday weekend can quite often be a little lighter on trading volume with traders using the opportunity to take an extended break but with all of the events scheduled today, I expect there to be more activity than normal."
1106: Greek prime minister Alexis Tsipras says he is "optimistic" a deal will be done with creditors to unlock further aid. He said “Discussions last night with chancellor Angela Merkel and president Francois Hollande were constructive and [held] in a very good and friendly atmosphere", he said as he arrived at the EU summit.
1000: UK public sector finances improved more than expected in April, the ONS reveals. TPublic sector net borrowing, excluding state-controlled banks, totalled £6.8bn in April, down nearly 27% from a year earlier, compared to analysts' expectations for a shortfall of £8.1bn.
0921: German gross domestic product rose 0.3% quarter-on-quarter and 1.1% year-on-year in the first quarter, a final estimate confirmed, as expected by analysts. “Two factors contributed to the relatively low GDP growth rate,” said BNP Paribas analysts. “First, import growth, at 1.5% q/q, significantly outpaced export growth, at 0.8% q/q. Second, inventories also subtracted 0.3% p.p. from GDP growth, though it should be cautioned that inventories have taken from growth in the last five quarters.”
0900: The FTSE 100 has opened higher, led by Vodafone, HSBC and miners. Vodafone's stock continued its surge this week as speculation continues about a merger or partial take over by Liberty Global. HSBC rose after confirming rumours that it is looking at a possible disposal of its Brazilian operations, though it has not yet made a decision. Recent reports suggested that Banco Santander's Brazilian unit could be a potential buyer. Mining stocks were snapped up early on, with Anglo American, BHP Billiton and Fresnillo all on the rise as metal prices advanced.