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This article was published June 29, 2015 at 8:25.
The last change is the 29 June 2015 at 17:01.
As feared, the markets react badly and with strong sales in the market for which is sull’azionario bond to the news of the referendum greek (while the euro resists). Milan stock gives 5% mentro the spread BTP-Bund traveling mid-day at 150 points, up by 30 compared to the day before, after touching even 200 points in the first exchange. At that point – as confirmed by Bloomberg – the ECB intervened with purchases in line with the plan of quantitative easing.
After the interruption of the talks on the bailout of creditors and the Greek authorities, the ECB has frozen vital funds Greek banks, leaving Athens with no other choice but to close the doors to prevent the collapse. Greek Banks and Stock Exchange will be closed for the whole week, with a limit of 60 euro per day for the cash withdrawn at ATMs. “The risk of a” Grexit “is growing,” he wrote today in a note Goldman Sachs.
The Athens Stock Exchange is closed but then to get the idea of what was lost if it was open, you can watch the progress of ETF Nasdaq-listed, “FTSE Greece 20 ETF Grek”, which tracks the greek performance of the FTSE / Athex 20. He’s crashing 17% in pre-opening.
Even Wall Street goes down but in a decidedly lesser extent than the European stock exchanges. The Dow Jones sells 0.8%.
It should be said that at the time for other European markets there are signs of “panic selling”: the markets are, very simply, and waiting for news from Athens, canceling the optimism that was leaked last week and in one sitting are rimangiando earnings developed in the previous five. Meanwhile, the greek prime minister, Alexis Tsipras, has written a letter to the heads of state and government of the Eurozone, in which it requested a one-month extension of the aid plan: “I ask you to re-evaluate your position on the issue – says the letter, sent Sunday. Tsipras defended, also, the decision to hold a referendum as a democratic right of the people greek “.
In a press conference the president of the European Commission, Jean Claude Juncker stressed that the latest proposal on Greece contained no cutting public wages and pensions, but more social justice. Reiterating that “our door is open and we are bridges to fight until the last minute to find an agreement” with Greece. Adding “I will ask the Greeks to vote yes to our proposals.” Now the ball is in the referendum scheduled for next Sunday.
In an attempt to mediate at the weekend was also attended by the US Secretary of State Lew, worried that Athens can come under the influence of Russia. “The creditors of Greece should demonstrate flexibility and to consider a debt restructuring in Athens as part of discussions on a possible agreement.” But the creditors at the time held a hard line on the renegotiation of the debt even if they remain “open to new talks if Tsipras wants”, as said German Chancellor Angela Merkel.
The markets are suffering in what It is a candidate to be a full-blown black Monday. The spread between BTPs and German Bunds in startup reached almost 200 points, jumping by about 80 basis points over the previous Friday (123). Then the differential fell violently, ranking around 150. A movement tied to purchases in support of the periphery by the ECB. Unprotected from the protection of the ECB Greek bonds to two years flying to 33% from 21% the previous Friday.
The ECB however can not certainly intervene on the stock market where the implications are more obvious. The lists of the old continent see go up in smoke 340 billion euro based on the Eurostoxx 600 that leaves on the ground 3.25%.
At the Milan Stock declines widespread on all titles. The FTSE MIB has come to transfer 5%, and then stabilized with a decline to around 3.5%, and return to lose 4%, in line with other major European markets. Down Tokyo and Shanghai.
In sharp decline bank stocks with Intesa Sanpaolo and Unicredit returned to trading after a suspension for excessive downward. It is clear that an increase in spreads and yields on government bonds penalizes banks that hold the belly in a significant amount of securities.
In this situation remains tonic that the euro after slipping below 1.10 in the night is then directed to $ 1.11 (euro / dollar rate and currency converter).
Meanwhile, there are the first statements on a day that promises to be highly volatile, precisely in relation the words of the charges involved in developing the institutional crisis. According to Ewald Nowotny, a member of the Governing Council of the ECB, the situation in Greece “is certainly dramatic when banks and stock exchange remain closed for a week. One can only hope that after the referendum we can get to a solution, “he said, adding that in the case of a” no “to the proposal of the creditors,” it is obvious that the options for further constructive discussions will be very limited. ” Failure to pay the IMF “does not mean immediate default,” he concluded.
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