The decision by Greek Prime Minister Antonis Samaras to hold a December presidential election has seen a knock-on effect through bond yields and indices.
Samaras announced an election to take place on December 17, with further votes on December 23 and 29. The candidates for election will represent the incumbent right who want to continue with austerity to pay back the 245 billion euro bailout, and the radical left party of Syriza who wants to renegotiate sovereign debt, push up public spending and possibly leave the Eurozone.
The political upheaval involved in the elections caused investors to flee from Europe stocks, bringing the Greece20 down by 12.8% with a slight rebound to 334.25.
The Europe50 slid further from last week, losing 3.2% since 5 December.
France40 fell from its 5 December figure of 4414.99 by 3.5% and though had a small rebound, has sunk again to 4279.25 as of 10.00am GMT.
Italy40 fell 3.8% in one day yesterday. From 20139 to 19394.
China exchanges had the largest intraday movement, but the US acted independently and bought US assets after the fall, taking the US exchanges up to delete any losses made in the day.
Now the market is looking for direction as the Germany30 [DAX] starts to recover but is playing on volatility as the US market opens. With a bearish scenario, we may see the Germany30 converging against the S&P500, or the bulls may charge and the Germany30 will soar.
MT4 chart: Europe50
MT4 chart: German30 [DAX]
MT4 chart: USA500 [S&P500]
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