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Greece reopens stock market to huge losses

Greece reopens stock market to huge losses

Imagine your company being shut down for five weeks and then you open again….to lose very nearly 23% of your value in a day. This is the real life situation for the Greek stock market when it re-opened after a forced hiatus. When you look more closely, the shares that were really bearing the brunt of the losses were banking shares. They make up a sizeable chunk of the index – around 20%.

The Pound continues to test the Euro for higher levels and has opened today robustly, trading higher than our close on Friday already. The Dollar has seen little change and is still following a fairly choppy price action trajectory. The USD has received some support as buyers migrate towards the safe haven in the face of instability driven by the Chinese economy worries. The low of the year was struck by the Chinese stock market today where there are still very real concerns that the economy faces ongoing headwinds.

This morning we saw a range of Markit Manufacturing Purchasing Managers Index releases from many Eurozone nations and Britain. Only Spain’s figure failed to either meet or beat expectations. Later on, the US will share their figures and these are forecast for nil change. With not much more on the horizon, I think we will continue to hear rumblings of political dissent from Greece and more economic concern from China. All of which may continue to underpin a Dollar where the talk of interest rate rises remains optimistically in the air.

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