Monday, December 29, 2014

High voltage on the Stock Exchange, Athens to -11% shakes markets: Milan on … – News Blasting

High voltage on the Stock Exchange, Athens to -11% shakes markets: Milan on … – News Blasting

Day glowing on market bombarded by news of early parliamentary elections in Greece, after the failure of the third and last attempt at election of the President of the Republic . The quorum was 180 votes in favor. After the frost on the Russian economy that risks a loss of 4%, now is Greece to shake the bags with Athens came to lose in the day more than 11% , then rip on a final red by 3.9%.

In short, not only the collapse of oil and the ruble crisis, but now the estate of the European Union and the Euro are seriously at risk.



The day the stock market

That today in Exchange would not have been a day like the others was predictable. Many had anticipated this moment (like the three ‘tenors’ Nouriel Roubini, Paul Krugman and Yannis Varoufakis), when Greece would revolt to the “unity government” Troika shaking the Eurozone. Milan Stock was sunk from Athens, making it the worst in Europe along with Madrid. Arrived to lose more than 3%, the FTSE Mib sold its 1.15% 19,130 ​​ points, the FTSE All share 0.96%, because of tensions from the countries of the ‘periphery’. Also weighing on the price list in Milan, also, banks and securities Enel (-1.85%) and Mediaset (-1.82%), again in the spotlight.

The return of the Italian government bonds is back above the 2% , while the differential BTP-Bund has broken portion 145, and then retrace to 143 basis points. These are the consequences of a further flattening of the yield on the Bund 0.55%. However, today there was the auction of Bot to 6 months and CTZ. Fully placed, the 7 billion Bot have seen a return to growth in 0.297%. For the 2.5 billion CTZ, however, yield down to 0.489% with a bid to cover ratio of 1.46.

Greece towards the third default since 2009

It is not the first time that in Greece it comes to default: in fact, to say Actually, it is the nation that has repeatedly undermined the integrity of the Eurozone. From 2009 to Athens well twice declared bankruptcy , to increase the public debt due to the exponential growth of the spread on government bonds. And so the May 2, 2010 eurozone countries and the IMF have approved a bailout 110 billion, then replicated in October 2011 for an amount of 130 bln. Foreign banks were saved though with some loss, leaving a country in crisis and at the mercy of the Troika (EU Commission, IMF, ECB) . The government of “national unity” has worked for the Troika until September 2014, when they were raised strong opposition internal policies that have prevented then the election of the President of the Republic . You go so early elections January 25, 2015 < /strong>.

The party is ahead in the polls Syriza , which while not including the output from ‘ euro, pressed for the restructuring of the public debt, now limited dall’austerity draconinana and, even more, German. But it does not end here , because, given the fear of investors for a country unstable and full of indecision, now Greece is likely to mess up the idea of ​​a Qe . Neither the Central Bank nor any other financial institution never accept to risk their own money for a Country insolvent .

But the game is still all to play . Syriza not necessarily win alone, could be forced to a coalition government, but it could also lose. Perhaps for these indecisions today has avoided the feared meltdown of stock markets.

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