While yesterday’s reaction especially in regard to surging periphery bond yields might have been somewhat overdone it clearly showed that investors are running out of patience and are demanding a comprehensive solution once and for all to put the European financial crisis to rest and not just another stopgap measures to buy some time.
Therefore while a slight bounce in early trading wouldn’t be much of a surprise, downside momentum after a short break having seen stocks rebounding towards the end of last week seems to have firmly re-established itself with further losses likely in the days to come as Greek elections are only a couple of days away.
It remains doubtful if markets indeed have fully priced in either a win by anti bailout parties or a repeat of the last election where no party achieved a governing majority which would mean that new elections would have to be called once again leaving more room for uncertainty.
Markus Huber - Head of German HNW Trading - ETX Capital
www.etxcapital.com
Therefore while a slight bounce in early trading wouldn’t be much of a surprise, downside momentum after a short break having seen stocks rebounding towards the end of last week seems to have firmly re-established itself with further losses likely in the days to come as Greek elections are only a couple of days away.
It remains doubtful if markets indeed have fully priced in either a win by anti bailout parties or a repeat of the last election where no party achieved a governing majority which would mean that new elections would have to be called once again leaving more room for uncertainty.
Markus Huber - Head of German HNW Trading - ETX Capital
www.etxcapital.com