Spreadex Market Update
Greece to go to the polls in potentially volatility-inducing election
The third failure of Greek Prime Minister Antonis Samaras to coerce his colleagues into voting for Dimas means that Greece will go to the polls in January, in a move that sent a shudder through the rest of Europe. This snap election allows left-wing party Syriza to get its foot in the door, and potentially disrupt the tentative stability currently holding the Eurozone together.
Syriza want to renegotiate the terms of Greece’s debt, including the cancellation of its EU/IMF bailout. Whilst this move would likely push the Eurozone further into the arms of Draghi’s intended quantitative easing, the short-term shock of such potentially volatility meant the Eurozone indices spent the day trading at a loss.
With a day lacking in home-grown news, the FTSE was reliant on either the Greek election or the US open for some bullish sentiment. However, with the disappointing Greek news, and a US open that obeyed the general Christmas hangover afflicting the worldwide markets, the FTSE failed to make any significant movements in the right direction this afternoon.
Despite the flat open from the US markets, the Dow Jones still managed to maintain its 18000 levels; however, it remains to be seen how long the index can keep up such a positive run. As it continues to seek out new records, it is unclear what the Dow’s newest resistance level will be. With US consumer confidence tomorrow, and unemployment figures on Wednesday, the Dow doesn’t have many obstacles in its way to at least secure the 18000 mark for the New Year.
Finally, Brent Crude oil, that looked set for a minor rebound following an oil-based disaster in Libya, couldn’t hang on to whatever slender growth it had managed this morning as the day went on. Attacks on oil ports in Libya seemed to answer some of the questions OPEC had left unanswered in relation to the worldwide oil glut current affecting prices. However, this bombing, unsurprisingly, couldn’t help it truly rebound above $60 per barrel, as oil still looks for help as the year comes to a close.
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