Good Greek news
by Peter Switzer
The big news of the day is that the Greeks are starting to realize that exiting the euro might be a bad idea and a recent poll showed that a coalition which would support the euro is looking more likely.
This sent Asian stock markets up but we will have to wait another day before we get Wall Street’s reaction as the USA is on a public holiday.
The Nikkei was up around 0.2 per cent but we stumped that with the S&P/ASX 200 index putting on 0.96 per cent to end up at 4068.
What we’re seeing right now is — what the Greeks take, the Greeks can give back and it underlines the importance of the vote on 17 June.
The Shanghai Composite was up 1.19 per cent while the Hang Seng in Hong Kong put on 0.47 per cent.
This reaction to better news out of Greece now has to deal with concerns over Spanish banks after the Government had to bailout the country’s biggest mortgage provider — Bankia.
It was thought it needed nine billion euro but it now looks like 23.5 billion euro!
If Greece can vote in a pro-euro government, then I’m betting EU officialdom will get serious on a plan to ensure that Spain and Italy don’t become the next debt-laden, Greek-style problem children.
The task ahead is mammoth but if a viable plan emerges, then stocks will spike. Unfortunately, the reverse could be the case!
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Published on: Tuesday, May 29, 2012
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