Greek Stock Market Falls After New Government EUR Defiance

Greek financial markets were in turmoil on Wednesday with investors fearing the new anti-bailout government was determined to defy its international creditors.

Greek five-year bond yields jumped to a record high of 13%, reflecting fears investors may not get their money back.

Share prices also fell for a third consecutive day, with the main Athens Stock Exchange (ASE), down 7.6%.

The index has fallen 10% since the election.

The biggest losers were bank shares. Piraeus Bank was down more than 20%.

In the two sessions since Sunday’s election, banks have seen 23% of their value wiped off, with investors fretting that the possibility of Greece leaving the euro would see bank accounts converted back into a new Greek national currency.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza