Business
Monday June 29, 2015
global financial Panorama
The main European stock markets recorded heavy losses Monday between 2 and 5.2% due to the worsening crisis in Athens and the fear that Greece leave the euro, on the first day of open markets after the authorities declared a bank holiday and a playpen in the Hellenic country.
Even within Europe, all seats were affected by this, the most accused have been the peripheral countries as Portugal fell 5.2%; Milan, also 5.2% and Madrid, 4.6%.
In the Spanish market, Banco Santander fell 6.7% to 6.33 euros and BBVA lost 6% to 8.82 euros. Other entities also posted losses, with the prospect that the crisis will spread to other countries in southern Europe. Bankia fell 4.2% to 1.13 euros, Banco Sabadell gave up 5.2% to 2.17 euros, Bankinter lost 4.3% to 6.63 euros, Banco Popular 7.2% to 4.37 euros . CaixaBank 4.3% to 4.17 euros
In the case of Paris, the CAC 40 lost 3.7%; while 3.6% gave Frankfurt and London, 2%.
The situation in Europe also affected Wall Street, the Dow Jones Industrial Average, its main indicator, He sank 1.9%. The index fell 349.93 points to close at 17596.75 units, the selective S & P500 fell 2.1% to 2057.66 integers, and the Nasdaq composite index fell 2.4% to 4958.47 points . Moreover, in the region of San Pablo bag lost 1.9% to stand at 53 014 points.
The markets around the world have been affected by the failure of negotiations between Athens and its creditors, after Greece decided to convene on Sunday, a referendum on the reform proposals of the troika.
The calling of the referendum caused Greece’s creditors to suspend the negotiations and not would extend their rescue, which ends tomorrow, when Greece must also pay 1,600 billion to the IMF.
Similarly, the European Central Bank (ECB) announced that it would raise emergency loans to the Hellenes banks, hard hit by massive capital flight, forcing the Greek prime minister, Alexis Tsipras, to close banks and impose a limit on withdrawals of deposits.
This control of capital, known as corralito, has been implemented today, a session in which the Hellenes banks have been closed as the Athens Stock Exchange.
The tension that has caused Greece has been felt ever since the opening, when the main squares recorded very heavy losses, in some cases exceed 4% as in the case of Lisbon and Frankfurt.
In most markets, banks were the ones who dragged the indices affected by . the important gains that recorded risk premiums, which in the case of Spain it has come to add 70 basis points in the opening
However, at the end of the session, these gains have been achieved smooth; Spanish risk premium is over 155 basis points; Italian, at 160; and Portugal, 229.
The only one that has increased has been to Greece, which has ended in 1,429 basis points, after starting the day in 1160.
On hand, the main European political leaders have sought to reassure the public, although some of them have been critical of the Greek government, as in the case of the president of the EC, Jean-Claude Juncker, who has asked the Greeks to say yes to European proposals in the referendum on Sunday.
In the event that the Greeks accept these proposals, creditors may be willing to resume negotiations, as declared some of them, they are confident that the country remains in the euro zone, although its output, it is a scenario that openly contemplated.
In this regard, the Commissioner for Economic and Financial Affairs of the EU, Pierre Moscovici, said that there is still room negotiations with Greece, an opinion shared by other leaders like Spanish Economy Minister Luis de Guindos, who after noting that the reforms undertaken in Spain are those that allow it to face a crisis like the one caused by Greece, said today that ” there is still time “for the deal.
Despite the upheaval that has been generated in the market by Greece, Fidelity experts considered that the risk of a significant impact outside Greece is limited and have said that although they are watching the highest level of concern, soon investors will again focus on local issues.
“No panic, this is the main highlight “ highlighted, meanwhile, Renaud Murail of Barclays Bourse in Paris. However, the expert said that as it is very difficult for the market to speculate on an uncertain political scenario, investors trimmed positions.
The euro meanwhile, recorded a slight rise against the dollar to a level of $ 1.1177 after Sunday’s single currency fell below the threshold of $ 1.10, to 1.0955 per dollar, touching a minimum of four weeks.
The market “is kidnapped by what happens abroad (outside the US) and Greece”, said Bill Lynch, of Hinsdale Associates. However, the analyst added that he is convinced that the Greeks will vote “yes” to stay within the euro zone, and that the market has no reason to collapse in free fall.
Tokyo
The Nikkei index of the Tokyo Stock Exchange fell on Monday to a minimum in more than a week also affected by concerns after the Greece risk falling this week in a default on its debt soared dramatically.
The Nikkei was down 2.8 percent , to 20109.95 points, its level lowest close since June 19. This was its biggest daily drop since January 6.
In turn, China’s prime minister vowed on Monday that the country will continue to invest in euro zone debt, official Chinese media reported, adding that the funding crisis in Greece is also a problem for Beijing.
Reviews Li Keqiang were revealed just before a summit with the European Union in Brussels that seemed aimed at calming financial markets in the region, rattled by the growing risk of Greece leaving Eurozone
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