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Major markets gain as Syriza rapidly forms government

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By Euronews
Major markets gain as Syriza rapidly forms government

By the end of Monday it was clear that Syriza’s victory in the Greek general election, while creating a bit of early panic and sending markets down, was not the big bad wolf so feared by traders before Sunday’s vote.

All major markets gained; mainly because Syriza eliminated uncertainty by rapidly forming a government.

“The fact that we have a government and the fact that the instability effect seems to be over now is good news. But if the re-negotiation keeps going over a longer and longer period than expected then I’m sure that the markets will see this as a new risk,” said Attica Bank’s Theodore Krintas.

The Athens stockmarket was down, with banks being hit hard, mostly because Syriza has promised to cull their top management, blamed for helping the country get into its mess.

“A second euro crisis, euro crisis 2.0, is not in the cards. The institutional framework in the euro area is very strong. We can also see that in the financial markets there is no danger of contagion, so we can be relatively relaxed,” said DZ Bank’s Stefan Bielmeier.

Quick to form a government, Syriza will face far harder tasks in the near future, but for the moment people seem to be taking a wait and see attitude.

“Syriza’s efforts to calm the markets seem to have worked. Investors remain cautious and believe that there are very few chances of an open collision between the new government and the eurozone. Furthermore, some think that a wider discussion about an end to austerity will begin,” says euronews’ Symela Touchtidou.