Tuesday, January 6, 2015

Greece and oil again set the pace of European stock – Caracol Radio

Greece and oil again set the pace of European stock – Caracol Radio

Madrid, Jan 6 (EFE) .- The main European stock markets closed again today a day with losses, affected again by fears among investors raises a possible Greek exit from the euro area, plus the falling price of oil and the euro.

Within Europe, the bear market was the Spanish, the IBEX 35, which lost 1.22%, followed by London, which left the 0, 79%; Paris, 0.68%; Milan, 0.25% and Frankfurt 0.04%.

This despite European markets after its collapse yesterday, started the session with a recovery, which was supported then by positive opening on Wall Street.

However, after the collapse suffered by the price of oil, turn red again.

The fall in oil prices also affected the Russian currency, the ruble, he turned to scorn today, while Moscow Stock Exchange suffered declines of almost 2%.

In all joined in Europe uncertainty about the political future Greece before the elections 25, an election of which could emerge victorious leftist party SYRIZA, contrary to the measures approved in Europe in exchange for the help of partners.

Although SYRIZA has assured that in case of a victory for the left, the country will remain in the euro and negotiate with its partners, the president of the European Commission (EC) Jose Manuel Barroso warned that if “not meeting” commitments “will be consequences “although he was” confident “that” honor its obligations “.

The president of economic research institute in Munich Ifo, Hans Werner Sinn, has asked to convene an international conference on Greek debt, aimed at enabling a temporary Greek exit from the euro to gain competitiveness.

From Portugal, Foreign Minister, Rui Machete, said that although you want the Hellenic country keeps its European partners, their eventual output will not be “tragic” for the country as it would have been some years ago.

Given this situation the Hellenic country, the high volatility of the market, and falling euro lows, around of the $ 1.192, was useless to markets know that the European Central Bank (ECB) could be studying three options to buy sovereign bonds to combat a potential deflation scenario.

The experts also considered the Bank of Japan could conduct further stimulus to the possibility that lowers its inflation forecasts.

Similarly, the uncertainty generated by the situation in Greece has not only left felt in the equity market, but also in debt.

There, the risk premium of Greece, who had started the session at 915 basis points, rose at the end of the session 930.

The country risk of Italy also rose to 142 basis points from 135 this morning, and Portugal, to 213.

Meanwhile, the risk premium Spain rebounded to 120 basis points from 111 at the beginning of the meeting, and that the interest of German bonds to ten years-considered safer and reference in Europe today touched record lows, dropping to 0.446% , from 0.504% when trading this morning. EFE

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