Markets tumble on Greek future

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Markets tumble on Greek future

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Stock markets have been falling again as uncertainty about the future of Greece rattles investor confidence in the eurozone. Bank stocks lead the downward trend on Monday because of exposure to a possible eventual Greek default and its knock-on effects.
Understandably Athens suffered the biggest fall – down just over four-and-a-half percent by lunchtime. Madrid and Milan followed, both down around three percent.

“We are influenced by political developments once again, and those are negative on the whole,” said Robert Halver, the Head of Market Research at Baader Bank. “We have the Greeks who are not able to form a government, there is the question of what Mr. Hollande and Mrs. Merkel will discuss this week, austerity or more debts. All of this is quite sad because the world economy is booming.”

The talks on forming a government in Greece have been stalled by the refusal of various smaller parties to support any coalition in favour of continuing austerity.