The Asian markets provided no respite from the continuing fears that the failure of Greece to form a suitable government will do irreconcilable damage to the Euro. Eurozone leaders will get together in Brussels later today as the uncertainty in Europe, Greece and France, causing a massive fall in the global markets.
Although there was a little comfort for the Euro – up 0.08% against the USD at time of writing (4.06am GMT) after opening down in New York last night – stocks continued to fall in Asian trading. Japan’s Nikkei 225 index was down 1.2%, while South Korea’s Kospi was down 1.4%. The hardest hit were bank shares following on from Spain nationalizing one of their biggest banks, but the uncertainty over the Euro saw shares fall globally – The US benchmark Dow Jones index finished its session down 1%. London’s FTSE 100 share index and Germany’s Dax both dropped 2%.
Today (Tuesday) will be an important day for the markets with a raft of economic data being released, but investors will keep a keen eye on what is happening in Greece – failure to end the stalemate might force more elections in June, which might well increase the chances of Greece dumping austerity measures as set by the EU/ECB/IMF in exchange for bailout money and leave the currency zone altogether. There should be plenty of movement in the markets as preliminary gross domestic product growth figures are expected for the eurozone as a whole as well as for France, Germany and Italy. Also the ZEW Centre for Economic Research will release a report on German economic sentiment as well as for the entire eurozone.
Investors will look for signs of hope and signs of nails in coffins so with record lows in commodities and lows in riskier currencies and shares – the bottom feeders will be out in force if there is some positive data.
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