Wednesday, May 9, 2012

Greek bailout uncertainty sends Asia markets, euro into tailspin


Asian markets and the euro fell on May 9 on fears Greece could leave the eurozone.

Source: Press TV
http://www.presstv.ir/detail/240292.html

Asian markets and the euro have taken a tumble over a plan in Greece to form an anti-austerity government, which raises the risk of the country’s departure from the eurozone.

The Wednesday’s fall comes after European people voted against pro-austerity leaders in elections in countries including Greece, France, Germany and Italy.

Following the uncertainty in Europe, Tokyo shares fell 1.19 percent. Hong Kong dropped 0.73 percent, Shanghai shed 0.87 percent and Seoul fell 0.64 percent.

The leader of Greece's left-wing Syriza party, Alexis Tsipras, said Tuesday that his cabinet would rule out all budget-cutting austerity measures, which were imposed under an EU-IMF bailout deal.

"The public verdict has clearly nullified the loan agreement and (pledges) sent to Europe and the (International Monetary Fund)," he said, while considering the bailout terms as "barbaric.”

His remarks raised the prospects that Athens would be denied any fresh cash for paying its debts, which could lead the country to default.

Tsipras received a mandate to form a new government after the country’s two ruling parties advocating austerity measures suffered major losses in Sunday elections.

"The failure of the Greek election to produce a new government provides some support to our view that Greece could leave the eurozone as soon as the end of this year," London-based Capital Economics’ note read.

The concerns also affected the euro, which fell 0.3 percent to $1.2971.

"The situation in Greece remains worrisome, especially with respect to the euro," Toshiyuki Kanayama, market analyst at Monex brokerage, said.

The turmoil in the euro region has urged EU Commission to call on the bloc members to stick to their budget cuts, while promising to draw up plans to introduce more growth measures to alleviate economic hardship.


No comments:

Post a Comment

Thanks for commenting on this post. Please consider sharing it on Facebook or Twitter for a wider discussion.

Russian / Ukraine War - (Mar 08th, 2024)

How the Ukraine War Changed the World - (Mar 01st, 2024)

Redacted - Egypt's betrayal of Palestine - Vanessa Beeley

CrossTalk | Magical thinking - (Feb 28th, 2024)

Hillary Clinton Interrupted & Called Out in Berlin

We don’t want war with Israel, but if they impose it on us, we are ready – Hezbollah

ICJ delivers ruling in favour of South Africa

ICJ ruling | Court stops short of ordering Gaza ceasefire, demands that Israel prevent genocide

South Africa's Closing Argument Against Israel for Genocide at the ICJ

Wider Middle East war. US, UK strike Yemen

U.S., UK Start Another Unwinnable War In Yemen

Geopolitical Storm Brewing from Palestine to Ukraine

How the US Global Order is Challenged - With Pepe Escobar (Nov 20, 2023)

Shahid Bolsen - Message to the Israeli people

Roger Waters - To Whom It May Concern: Please Stop.

US policy slowing down China's economy w/ Jeffrey Sachs

Max Blumenthal s destroys RFKJr's outrageous Israelí Propaganda

Totalitarianism, Censorship and Syria with Peter Lavelle, Vanessa Beeley & Kevork Almassian

Putin shows treaty on Ukraine’s neutrality, signed by Kiev but dumped under Western pressure

Assad's speech at the Arab League Summit - what it means for the future of the region

Assad returns to Arab League

HUGE China brokered deal, Iran & Saudi Arabia restore diplomatic ties

Nord Stream pipeline & sabotaging peace w/Jeffrey Sachs

The Tragedy of Ukraine

Historical Events that Led to the Start of the Ukraine Conflict

Your Wars Will Destroy the Planet - Roger Waters

Healthy Athletes suffer Heart Problems After Getting the Jab