16 Jun 2011

Main market theme: Greek Tragedy



European markets were dominated by concerns about a Greek default. All assets traded in a risk-on environment: shares fell, EUR fell, bond spreads widened, and CDS were higher, especially those of European periphery.

Main concerns were that Germany will push back a Greek aid at least until September. But EU officials declared that Greek financing is assured until September and German banks are the second largest Greek creditor, second only to France. So, in my opinion, Greek is "saved", but since most of the money will come from Germany it is only putting pressure either to benefit from a falling EUR or to benefit from some Greek assets sale.


See full article at: http://profitbursier.ro/en/PB-FX-report-16-june-11.html



Radu Ciofu, PBfx.eu.