Greece Crisis once again dominated global economy – Global shares, commodities tumble

The European markets are expected to follow their Asian counterparts and financial analysts and speculators predicting that the main European Markets such as FTSE, GDAXI, and FCHI may open lower with 0.3 percent and the Europe Stock Futures up by 0.3 percent.

The Asia-Pacific shares of MSCI’s broadest index outside Japan MIAPJ0000PUS pushed back to as low as 1.1% which a four month low and then shedding some losses  to 0.4%. The worst performance came from commodities that dragged down the Australian shares AXJO. On the other hand, a sturdy yen and exporters with high exposure to Europe were responsible for Japan’s Nikkei average N255 tumbling down as much as 1.5%.

The U.S Bench mark S&P or Standard & Poor’s 500 indexes SPX fell below the key support line at 1,340 and bank shares took a severe beating because of J.P. Morgan Chase & Co. suffering a trading loss which is estimated to reach $3 billion or more. The euro dashed to a four month low of $1.2814 and in the same way the Australian dollar hit a low of $0.9945.

Currencies that are usually regarded as a safe bet for their stability have stayed well in the form of U.S dollar and the yen, with the dollar index .DXY gaining an up momentum of a four month peak of 80.739.

Absence of Government in Greece

Even after 8 days of election, Greece is not able to form a government. Another bout of elections seems to be on horizon with a strong political opposition to international bail out and austerity measures. It is unlikely that anti-bail out leftists will win even if new elections are held. European leaders are quite firm on their posture that they will cut off the funding unless and until the Greece government fulfills its bailout commitments.

 

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