As the US market was closed, the focus was on the EU meeting about the second bailout package for Greece. While EU ministers and investors appeared confident that a deal should be finalized after the meeting, the situation is not without uncertainty. Oil prices surged for another day amid rising speculations that Iran would halt oil supply to some European countries. While the UK and the EU said the impact on them would not be great, the market remained worried about the disruption, and particularly further escalation of the tension. Regarding the chance of approving the new rescue fund to debt-ridden Greece, German Finance Minister Schaeuble stated that 'We've set out to wrap up the decision on a new aid program for Greece. I'm confident' while Eurogroup Chairman Juncker said 'I'd like to assume that we will come to a final and definitive agreement tonight'. Yet, it's reported that the IMF remained insistent on a guarantee that Greece's debt would not exceed 120% of GDP in 2020, compared with some EU governments' demand for 123-125% of GDP. If the IMF insists on it, then actions by the ECB and Eurosystem central banks may have to be done and Greece will have to agree on more fiscal consolidation measures. Otherwise, even larger write-down of existing debt, probably via further alteration of the terms of the PSI would have to be done.

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