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Global Stock Markets Suffer as Greek “Egotism” Prevails

Global Stock Markets Suffer as Greek “Egotism” Prevails

Stock marketsaround the world suffered big hits during the day as Greece’s position within the euro becomes increasingly more precarious. With all the doors of Greek banks (and the Athens Stock Exchange) now firmly shut, and capital controls imposed across the nation, few depositors have access to their cash. The European Commission chief, Jean-Claude Juncker, pulled no punches when he said the fault lay with Greek “egotism” and he felt “betrayed” by the Greek government. With a national referendum to be held on July 5, this has now become a simple public vote on whether to stay in the euro or not.

Across the globe, stock markets and bank stocks all suffered as investors are sensing a “Grexit” is inevitable. In trading today, the FTSE was down 1.47%, the Dax fell by more than 2%, and the Dow Jones lost nearly 1%. Asia was hit too, with the Nikkei in Japan dropping nearly 3%. The Deutsche Bank and Commerzbank, Germany’s 2 largest banks, both saw their bank stocks drop by over 4%.

Unless Greece can find the required 1.6 billion euro repayment as of tomorrow, they will default. At this point in time, the Greeks really have nowhere to go. A last-gasp deal with either Russian or Chinese financial aid cannot be discounted, but is highly unlikely. How much more time before the likes of Spain, Italy and Portugal, currently the most vulnerable European economies, collapse the same way?

If you believe that this Greek fiasco may well lead to further damage to the euro in other parts of the eurozone, and subsequently will impact upon the global economy, please Like & Share this post.

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