06/07/2015 13:12
European indices record significant losses while bond yields are moving higher after the 'no' vote of the Greek people in yesterday's referendum.
The decline, however, is limited as the markets seem to react positively to the Greek Finance Minister Yanis Varoufakis’ resignation.
Investors focus on today’s meeting of the European Central Bank and the decisions expected in relation to the liquidity of Greek banks.
Bond yields in the region are moving to higher levels. The performance of the 10-year Italian bond moves at 2.31%, the Spanish bond yield is at 2.27% and the Portuguese at 3%.
The yield on the ten-year Greek bond amounts to 16.46% from 14.32% on Friday.
The performance of the Cypriot 10-year bond (2020 expiration) is falling to 3.46% from 3.57% on Friday.
The euro fell against the dollar at $ 1.0967 on the announcement of the referendum results, but later, after the announcement of Mr. Varoufakis’ resignation, the common currency rebounded to $ 1.1027.
Asian indices closed on negative ground.
Tough challenge for Merkel
The results of the referendum and the resignation of Yanis Varoufakis are the main subjects concerning international media today.
According to Wall Street Journal, the resounding “no” vote in Greece on Sunday presents German Chancellor Angela Merkel with her toughest challenge since the eurozone crisis broke out five years ago.
Her choice is now between yielding to Greek Premier Alexis Tsipras and sweetening the bailout terms for his country, or sticking to her hard line—and her own voters’ sentiment—in refusing any further concessions.
German media reported extensively on the outcome of yesterday's referendum.
Die Welt newspaper notes that after the 'no' of the Greeks, some politicians are calling for Greece's exit from the eurozone, while others are in favor of continuing negotiations.
French Finance Minister Michel Sapin is asking for the Greek government’s proposals to relaunch negotiations for an agreement with creditors on reforms.
Deputy Finance Minister of Russia Alexei Lichatsof said that the result of the referendum does not automatically mean Greece’s exit from the eurozone, but it is a step towards that direction.
An exit of Athens from the Eurozone will be a "shock therapy" for the EU, but it will consolidate the European currency, said the Russian official in the Russian news agency TASS.
The president of the German Industrialists (BDI) Ulrich Grillo described the outcome of the referendum as a “slap in the face of all Europeans" and stressed that the situation in Greece was now "even more dramatic.".
In his statements in Bild newspaper, Mr. Grillo considered the potential exit of Greece from the Eurozone as most likely.
European markets are moving downwards. FTSE 100 index in London is down 0.92%, CAC 40 in Paris is losing 1,64% and in Frankfurt the DAX is down by 1,32%.
Bank shares are recording significant losses.
CSE General Index stands at 77.16 units with marginal gains of 0.05% and the FTSE index is at 44.24 units and +0.02%.
The decline, however, is limited as the markets seem to react positively to the Greek Finance Minister Yanis Varoufakis’ resignation.
Investors focus on today’s meeting of the European Central Bank and the decisions expected in relation to the liquidity of Greek banks.
Bond yields in the region are moving to higher levels. The performance of the 10-year Italian bond moves at 2.31%, the Spanish bond yield is at 2.27% and the Portuguese at 3%.
The yield on the ten-year Greek bond amounts to 16.46% from 14.32% on Friday.
The performance of the Cypriot 10-year bond (2020 expiration) is falling to 3.46% from 3.57% on Friday.
The euro fell against the dollar at $ 1.0967 on the announcement of the referendum results, but later, after the announcement of Mr. Varoufakis’ resignation, the common currency rebounded to $ 1.1027.
Asian indices closed on negative ground.
Tough challenge for Merkel
The results of the referendum and the resignation of Yanis Varoufakis are the main subjects concerning international media today.
According to Wall Street Journal, the resounding “no” vote in Greece on Sunday presents German Chancellor Angela Merkel with her toughest challenge since the eurozone crisis broke out five years ago.
Her choice is now between yielding to Greek Premier Alexis Tsipras and sweetening the bailout terms for his country, or sticking to her hard line—and her own voters’ sentiment—in refusing any further concessions.
German media reported extensively on the outcome of yesterday's referendum.
Die Welt newspaper notes that after the 'no' of the Greeks, some politicians are calling for Greece's exit from the eurozone, while others are in favor of continuing negotiations.
French Finance Minister Michel Sapin is asking for the Greek government’s proposals to relaunch negotiations for an agreement with creditors on reforms.
Deputy Finance Minister of Russia Alexei Lichatsof said that the result of the referendum does not automatically mean Greece’s exit from the eurozone, but it is a step towards that direction.
An exit of Athens from the Eurozone will be a "shock therapy" for the EU, but it will consolidate the European currency, said the Russian official in the Russian news agency TASS.
The president of the German Industrialists (BDI) Ulrich Grillo described the outcome of the referendum as a “slap in the face of all Europeans" and stressed that the situation in Greece was now "even more dramatic.".
In his statements in Bild newspaper, Mr. Grillo considered the potential exit of Greece from the Eurozone as most likely.
European markets are moving downwards. FTSE 100 index in London is down 0.92%, CAC 40 in Paris is losing 1,64% and in Frankfurt the DAX is down by 1,32%.
Bank shares are recording significant losses.
CSE General Index stands at 77.16 units with marginal gains of 0.05% and the FTSE index is at 44.24 units and +0.02%.
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