Protests continue against Greece’s austerity measures, and the country’s financial crisis continues to have a domino effect on world markets.
Athens’s relatively tiny piece of the jigsaw is being blamed for global market falls yesterday and a continuing slide in Asia this morning, where Tokyo fell over 2.5 percent with Hong Kong and Singapore also sliding.
The euro has hit its lowest level against the dollar in over a year, and EU President Herman Van Rompuy, visiting Tokyo, is having a hard time convincing markets the situation is under control.
Some experts, however, are gloomy;
“I think we will continue to have more bad news from Europe, after Greece then Portugal then Spain. I think it’s like a domino effect, the house of cards is falling apart, and it will bring down the global financial markets too,” says Francis Lun, General Manager of Fulbright Securities Ltd.
Portugal is already attracting speculative attention, with pressure mounting on the market there, and its debt being downgraded, although not yet to Greece’s junk status. With Spain also teetering on the edge the fears are EU members will seek to restructure their debts, and it is that that is driving the market sentiment, a snowball that needs only the tiniest of pushes to send prices careering down.