European Central Bank

Prime Minister Antonis Samaras and incoming European Commission President Jean-Claude Juncker discussed on Thursday the broad strokes of Greece’s plan for emerging from its loan program as well as a pending review by the troika, which must be completed before such an exit can occur, on the sidelines of a European Union summit in Brussels.

Yields on lower-rated eurozone government bonds retreated further on Wednesday from highs hit last week as the possibility of European Central Bank purchases of corporate bonds brought riskier assets back into favor.

 Efe had reported that three Greek banks have failed health checks

The European Central Bank cautioned on Wednesday against speculation over the outcome of its stress tests after a media report said at least 11 banks had failed the landmark financial health checks, driving some banking shares lower.

By Yiannis Papadoyiannis

Analysts, investment banks and institutional investors appear optimistic regarding the results of the European Central Bank stress tests on local lenders, which has been mirrored in the performance of bank stocks so far this week. The message is that they expect the capital requirements to be announced this Sunday to be small and manageable.

Low-rated eurozone bond yields fell on Tuesday after several sources told Reuters the European Central Bank was considering buying corporate bonds, quelling some concerns that the ECB was not doing enough to stoke inflation and growth.

The third straight day of Greek stock market gains brought the benchmark close to the 1,000-point mark on Tuesday, as investors are pricing in expectations for a very positive result to the European Central Bank’s stress tests on local banks, which are to be announced this Sunday. The increased turnover points to an extensive move to cancel out last week’s major losses.

By Sotiris Nikas

Confirmation of the troika’s return date to Greece is still pending, as the country’s creditors are expecting the government to submit proposals concerning the issues that remain open.

Greek stocks continued along the path toward recovery on Monday after the big sell-off observed last week, as banks appear increasingly confident ahead of the announcement of the stress tests by the European Central Bank later this week.

The Athens Exchange (ATHEX) general index ended at 941.93 points, adding 1.09 percent to Friday’s closing of 931.81 points.

A review of the European banking sector due to be released on Oct. 26 should bring clarity on Greece's funding needs, the head of the monetary union's bailout fund said on Monday.

Klaus Regling, head of the European Stability Mechanism (ESM), also said the euro zone should keep the funds it is allocating for crisis resolution for future use rather than invest them in the economy now.

Greek Finance Minister Gikas Hardouvelis said in an interview published on Saturday he did not expect the European Central Bank's health checks to show major surprises for Greek banks.

Violent swings on financial markets in the past week have deepened investors' anxiety about what Europe's review of the health of its banks will reveal later this month.