In our overnight market wrap, we said that with the Greek D-Day doubling as quarter end for countless hedge funds most of which are now suddenly underwater, there would be a plethora of rumors designed to spark buying momentum algos which would provide brief selling opportunities. Alas, Germany appears to have crushed that particular option, when moments ago a German made it clear that at this point the only catalyst will be the now virtually certain Greek default to the IMF at midnight (+/- 1 leap second) Greek time. To wit (from BBG):
- TOO LATE TO DISCUSS GREEK PROGRAM EXTENSION: GERMAN OFFICIAL
Greece on the other hand kept the hope alive as Athens still doesn't get that to the Eurozone it lost the blame game and as such the European population is now, supposedly, convinced that a Grexit will be its own doing, when it said:
- TSAKALOTOS: WILL RECONSIDER VOTE IF WE GET DEAL WE CAN'T REFUSE
Which doesn't mean that rumors won't end. They just won't be credible, and as such in just about 10 hours time we expect to have the first official Eurozone default in (its brief) history.