While traders take a wait and see attitude regarding how the relationship between President Hollande and Europe, especially German Chancellor Merkel develops, at least in the short term much more cause for concern is the current stalemate in Greece. With the Pro Bailout parties falling short of forming a majority government another election seems to be increasingly likely putting at risk the next tranche of bailout money and leading to a possible default as yet more austerity measures will have to be agreed on first before more money is being released.

Today, with not much economic data scheduled for release, focus will be once again on politics, with the uncertainty surrounding Greece expected to put increasingly pressure on stocks early on. Despite the Greek saga dragging on for a long time now and it being two years since Greece received the first bailout, the intensity and impact concerns about Greece can have on financial markets and the Eurozone in general haven’t diminished in any way.

Markus Huber - Head of German HNW Trading - ETX Capital
www.etxcapital.com