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Markets cautious over Greek support

Markets cautious over Greek support
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Greece’s deal with international lenders for more money in return for more budget austerity lifted share prices in Europe.

An exception was Italy where investors’ confidence in banks was shaken by the suspension of trading in some lenders.

But analysts said that the rally was not sustainable as doubts over Athens’ ability to push through austerity plans remained in the background.

Robert Halver of Baader Bank said: “For two days, everybody was happy Greece is getting help. But that’s short-lived. Next week, we’ll find out what that pledge to bail out Greece is actually worth. The moment of truth comes, when the (Greek) parliament votes (on the austerity programme).”

Foreign exchange traders worries about whether Greece will actually be able for adopt its new austerity programme meant the euro was volatile, in the end falling in value against the dollar.