Tuesday, December 9, 2014

European stocks decline. Athens meltdown on fears of early elections – Il Sole 24 Ore

European stocks decline. Athens meltdown on fears of early elections – Il Sole 24 Ore

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This article was published on December 9, 2014 at 14:19.
The last change is the December 9, 2014 at 22:14.

Wall Street closes countered, with the Dow Jones lost 0.29% to 17,801, 46 points and the Nasdaq gained 0.54% to 4766.47 points. Debolel the S & amp; P 500, which yields 0.03% to 2059.78 points. Investors have had to deal with the news coming from China and Greece, with which Beijing has taken measures to limit the growing risks in the financial system fueled by debt. Athens instead were called early presidential elections.

The European stocks closed the session in heavy downward. On the market for government bonds, there was a rise in the yield spread between the Bund and BTP (here the graph of the day the spread) and the rate of BTP recapture the 2% threshold (here the graph of the tenth day). The rates of Greek bonds have soared while the Athens Stock Exchange closed with a fall of 12.78% scuppered by starlings on bank stocks. For the list greek one today is the worst performance for 27 years.

The tensions have returned to hold court after the decision of Prime Minister Antonis Samaras to anticipate the election of the new head of state later this month. A move that fuels the risk of early elections. If its candidate was defeated (Samaras has not designated a name to succeed the President Karolos Papoulias) the premier would ac tually forced to call general elections that are likely to lead to the victory of the extreme left of SYRIZA (according to surveys the first party in the country) contrary to the commissioner of the Troika.

The Milan Stock Exchange is among the worst mainly because of the wave of sales that hit the banking sector (here the graph FTSE Italy Banks) whose performance is often related to that of government bonds.

The European markets have finally affected by the crash of the Chinese stock market in one sitting has lost 5.4 percent. A slip powered by the new rules imposed by the authorities on so-called “collateral”, ie the titles that can be provided as collateral to obtain loans. The close of the China Securities Depository and Clearing Corp concerns in particular the low-rated debts that can not be used as collateral for short-term loans. The magnitude of the decline recorded by the Shanghai Stock Exchange (the worst since 2009) is partly explained by the profit-taking by traders to the end of a run that earned the index of the Chinese stock market 23% in just 13 sessions.



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