European stock markets have rallied slightly after Asian markets plunged this morning on news of the French election and the poor performance of the pro-bailout parties in the Greek election.
The results sparked fears that efforts to cut eurozone debt levels could unravel.
Greece’s ATG index saw the steepest fall. It was down over 6 percent by midday.
“Even after the election in Greece, it is absolutely clear that Greece should leave the eurozone to manage its economic problems,” said Robert Halver of the Baader Bank. “Having two problems, economic and political, will not be manageable. They have to go out.”
Investors also fear the election in France of socialist Francois Holland could weaken the German-led austerity drive.
The euro slipped to its lowest level since January against the dollar and to a three-year low against the pound.