June 22 - European leaders gather for a summit in Brussels with a pledge to create a blueprint for a euro zone economic union
I'll look at the week ahead in Europe centers on the EU leaders' summit in Brussels next Thursday and Friday. The politicians a promising nothing less than a roadmap towards -- eurozone economic union. In an effort to and the current turmoil all encompassing banking structures will be built in. The big question of course is whether the politicians can set aside their national interest for the common good. -- -- from the perspective of the creditor countries nominee Germany but Netherlands Finland Austria. There is -- he very clear balance to be struck between asking that taxpayers to take on additional liability. Which is what the periphery and didn't think France is actually came on thing at this time. And that extra control. Costing the German tax. To type on those liabilities without greater control over budgets in the periphery would speak domestically extremely difficult trying to knuckle. While the Greek election has -- a measure of reassurance the financial markets. It's also attend the spotlight firmly back on the problems in other heavily indebted countries such as Italy and most -- respect. The year is that movie the -- the end will be a vote to support spay and very picked it. And that you -- very not to moments can be gained experience in the case of Greece. Called who recapitalize banks. -- result going for the market to raise the dots amounts of money. Reassuring words that from -- -- -- the head of Europe's bailout mechanism. Investors nonetheless have good reason to be nervous as we head into the second half of the yet. Police this week's falling German business sentiment to its lowest level in more than two years. A full program will bail and bond auction next week. We'll test market appetite for sovereign debts in both cool and peripheral Europe Spain's ten year yield has for now fallen back below the critical 7% -- The full scale bailout remains a real possibility. So what have stocks for a second off as it approaches the MSCI world index enjoyed a strong run up in the first three months of the year. But has given up nearly all those gains in the second quarter. The prospect of another around the full blown QB from the feds should prove it supported moving towards Orton. But don't expect any fireworks from stock markets -- as well hadn't -- IG index. There are enough people in law incredibly. Worried about -- -- situation and and stitching halls of -- not desperate to running. I think launching what we might -- -- the next few months is Fannie range bound market will be in a wide arrange to -- perhaps seen. In in periods of -- market size of the lost two year period perhaps or 10% oval. Range as opposed to sort of narrow -- percent -- as we've seen. But oil prices have been -- their lowest levels in eighteen months as the market takes a dim view of prospects for global growth and with that demand for energy. Brent crude has lost around 30% from its high point for the USA far. Despite the continuing tensions over Iran's commerce -- -- find that says there's little reason to suppose oil is heading back up again any time since. I think it's. Probably in the longer term it's way too low. But I would be surprised to see the prices broken even further. -- a negative sentiment given that continuing. Weakness -- was economists and even the strong middle. But I -- look at the week ahead in Europe and to join us each weekday morning from Reuters today a snapshot of the latest world news market headlines and social media box. I'm Nigel Stephenson thinks this process.