On Friday, the main catalyst that launched the early ramp in the EURUSD, subsequently sending both the Dax over 12,000, and the US stock market soaring, was speculation and hope that the latest round of Greek talks on late Thursday night ahead of tomorrow key meeting between Tsipras and Merkel in Berlin, had gone well, and there was a reason to be optimistic about the near-term for a Greece which increasingly more see as on the verge of expulsion from the monetary union. We explained as much, although we added the provision that at this point it is likely too late to do much if anything about Greece in “German DAX Surges Over 12,000 On Greek Optimism, But The Money Has Run Out.”
Now, courtesy of reporting by the FT, we can also rule out any of the so-called optimism in the aftermath of Thursday’s talks because as Peter Spiegel reports, not only was there no real consensus, but the talks “ended in disarray”, and even though “Greece’s prime minister and fellow Eurozone leaders emerged from a meeting early on Friday morning touting a breakthrough agreement to unlock much-needed bailout funds for Athens — only to fall into disagreement hours later about what it all meant.”
Two days of intensive and occasionally heated negotiations at an EU summit in Brussels amounted to little more than a repeat of talks a month ago between eurozone finance ministers that officials then also hailed as the definitive agreement to get the final bailout review under way.
And the punchline, “so similar were the two deals that, much like the one finalised last month, leaders involved in the talks could not agree on what was agreed within 12 hours after a late-night meeting aimed at resolving all differences.”
Full article: Germany Gives Greece One Final Ultimatum After Friday’s “Optimistic” Talks Devolve Into Disagreement And Confusion (Zero Hedge)