Greek Drama Affects Stocks and Bond Markets

Leading shares are suffering sharp falls in early trading, as another sell off in the bond market spooks investors and Greece comes closer to running out of cash despite Monday’s Eurogroup meeting amid talk of a possible referendum.

The FTSE 100 is currently 84.10 points lower at 6945.75, with the recent election rally and positive reaction to China’s latest interest rate cut seeming a long way off. The fall in bond prices – in Europe and overnight in the US – is doing some of the damage, with a number of reasons cited for the decline, including raised inflation expectations, an illiquid market and concerns the European Central Bank might end its bond buying programme early.

via The Guardian

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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