Sentiment sours in Europe as Greek drama drags

Deteriorating Greek situation pushed sentiment lower across Europe. Communications from Greek government and Eurozone creditors remain far off, so does the negotiation.

• Greeks are now facing looming referendum on latest bailout package on offer from lenders whether to accept or not.
  
  
• Greek Prime Minister urged the nation to discard the package, which could turn out as a road to exit from the currency bloc.
  
  
• Greece facing large payment of € 1.5 billion tomorrow to IMF and € 3.5 billion to European central bank (ECB) on July 20^th.

Today's economic survey showed that sentiment across Euro zone dropped as Greek drama continue to remain in limelight.

• Euro zone business climate dropped to 0.14 in June much lower from 0.28 prior and 0.27 expected.

• Industrial confidence dropped to -3.4 from -3 prior. Economic sentiment deteriorated to 103.5 from 103.8 prior.

• Services sentiment grew marginally to 7.9 compared to 7.8 prior but lower than expected at 8.

• Consumer confidence remained at same level of -5.6.

Falling sentiment would hurt European assets including Euro once the focus shifts from Greece.

Euro is currently trading at 1.112 against dollar.