Markets Plunge After Europe Election Results
Greek stocks closed 6% down after the weekend's election, as Asian markets also reacted badly to the poll results in Europe.
Francois Hollande's victory is likely to have a big impact on the eurozone, with the president-elect pledging to renegotiate the EU treaty on government debt.
In Greece, the ruling coalition was dealt a huge blow in parliamentary elections by voters who reject austerity measures - leaving the country's multi-billion pound eurozone bailout at risk.
Among European markets early on Monday, Germany's DAX dropped 1.5% and France's CAC-40 shed 1.6%. However, by the afternoon, most European markets had recovered.
Greek shares suffered a lot more - trading 8.2% lower at one point. The Greek market closed down 6%.
In the Far East, there was heightened uncertainty amid concerns about Europe's ability to solve its debt crisis.
Japan's Nikkei 225 index plunged 2.8% at 9,119.14, its lowest finish in three months.
Hong Kong's Hang Seng slid 2.6% and Tokyo stocks closed down 2.79%. In Singapore they were down by just under 2%.
Financial consultant Iain Anderson, from Cicero Group, told Sky News it had been "a sea of red" in Asian markets.
"They may be celebrating at the Bastille but they're not really looking forward to Europe's woes in Asia," he said.
"I think we're going to have a very turbulent ride over the next few days and weeks."
He added: "It's absolutely vital that Greece can form a government over the next three days.
"If it cannot, I think there will be real concerns and equally, everyone watching in Asia that first meeting between Hollande and Angela Merkel - we'll see how that goes."
what do you think?
What an absolutely needless knee-jerk reaction to the elections! Surely the markets should have anticipated that Hollande was likely to win the Frech Presidency, if Sarkozy had won I think that would have been more of a surprise! As for Greece, hardly the power-house industry member of the EC that this reaction has somehow provoked. In fact if Greece were to default and withdraw from the Euro that should actually make it stronger, instead of being a drain! So 2 countries in Europe (out of about 175 world-wide) can cause this much upset in the international markets, when in fact they have no real financial clout, me thinks that a bit of panic buying and selling is in operation. Get real this really is the proverbial storm in a tea-cup!
Paul. Either you or the markets, (which have sold off around the world and plunged 7 % in Greece) are too simplistic and don't understand what has changed over the weekend. I think I know which one I believe has got it right.
I may have over-simplified the situation Grant but I can almost guarantee that this time next week another 'major' event will spin the markets the other way.
Grant, and his superior attitude again. The French have got it right, and next it will be our turn to kick out the Tory failures. This country has voted, France has voted, no one wants the Tories..... suck it up Grant.
aa aa was it not a Labour government in 1976, that having run the British economy into the ground went cap in hand to the IMF for a loan Sociaist policy at its best
Paul, we should all know by now that the markets always go for a knee-jerk reaction. If we are lucky, they will calm down recover, if only partly, before the close of trading.
Michael, why are you going back nearly 40yrs to 1976? The Labour Party dropped the 'S' word in the mid 1990s. Oh, and what about that Disraeli fellow in 1876, he was an awful Tory Prime Minister... Hey, what about him? Or is that too far back in time for you?
I wouldn`t mind seeing Disraeli back ! we ruled the world then and MPs didn`t get paid for it.
ive obviuosly got under someone's skin, they keep pretending to be me on here.......flattery is great thanks. I now see that you cant win a debate in your own name stick to the racism & scrounging lol
Good point Karmacanic, why go back to 76? Perhaps because socialists go back to Thatcher? Or is that different?
so its ok for karmaggotnic to blab on and on about thatcher but graham isnt allowed to mention anything from labours history. typical left wing bully boy. so what if the labour party dropped the s word in the 90s the rest of us didnt.
Think this has all gone on long enough!!!! It's obvious the Greeks just want to keep on spending money they neither have nor can generate and the French want to keep their cosy life style. PULL OUT now and let them sink or swim on their own. The EURO is dead in the water, Cameron and Osborne should stop pouring OUR money into a lost cause not go back and start offering them more. It's all the borrowing by these other governments that have created this mess.
Spot on Ronnie!
Why is britian pouring money into the euro if we aren't even in it? Is this jus thr torys takin the p##s again?
No, they are taking our money, our industry and our living space. unopposed !
The last Labour government did the same. As for why we're doing it, our economy is still reliant on a lot of European trade. Not ideal but being a lone player in a world dominated by American, Chinese and Eurozone economies is probably even worse.
Alas poor Sean and Edgar you know not at all! We have not put one penny into the Euro. We have put a lot of money into the IMF with expectations of earning interest from it. Grt your facts right!
Open your eyes Sean... or was the EU created in 2010 when the Tories came to power? Both parties are equally culpable.
It just goes to show how bad lefty Labour policies are for the world, let's hope and pray they are never in government in the UK again. They split the UK, pandered to minorities and broke the bank.
Are you stupid. The world is in recession, founded on corrupt investment banking practices. The same practices that were backed by and encouraged by Maggot Thatcher. The fact that it all came to a head in a Labour tenure has no bearing at all. The whole world went into recession. Typical Tory idiot, can see the writing on the wall. Back peddling for two years,will not help, you're still going to get kicked out.
aa aa, as said in a previous comment, Thatcher was more than 20 years ago, why are you going back 20 years? That Pitt The Younger, it's all his fault...
So what, Shergar - sorry, Lorgar? It is an ABSOLUTE FACT that the mess we're in now is as a direct result of decisions, and a style of Government For Benefit Of The Few At the Expense Of The Many, which she invented. Oh, and Gordon, before spouting that "it's the lefties' fault" drivel, have a look at the fact; facts which will indicate that every labour goverment in recent history has been responsible for more growth and lower deficits than the Tory governments either side of them.
Well said Graham, the voice of reason at last.
It is an unfortunate neccessity there has to be a global economy- this does mean that local events extract a first served reaction- things will pick up provided the rest of Europe doesn't colapse in a heap. Hollande clearly wants the attention, but treaties need unanimous approval- which will not be forthcoming. The UK has to spend it's money wisely, this however does mean there is some latitude for backing the Euro- Formula 1 is not the only example of British jobs dependent on foreign trade. Talking of trade I favour a suplimentary European Currency that is for trade only (no borrowing or lending).
This is yet another case of proportional representation failing to provide a clear result, which first past the post usually (but not always, as we know) does. It opens the door to an eccentric little party to carry massive influence. The whole Greek situation won't resolve itself quickly, easily or without hardship, but a course for the future could be set if an orderly withdrawal from the Euro was put in hand, and the same is needed for Italy, Spain, Ireland and possibly Portugal and the Netherlands.
It's the end of the world as we know (and I feel fine)! REM When all about you is descending into chaos, it is futile to fight against it and waste energy. Instead, you must learn to work with it and... EMBRACE THE CHAOS!
No need to be so glum ! it`s not the world that`s coming to an end, only European civilisation.
We really need new political parties badly. Tories, Labour, the tea boys, it's stagnent.
"one of these daves im gonna cut you into little pieces" PINK FLOYD
Markets cant be fooled by spin & hot air they know socialists will wreak more havoc in France....they are just rubbish with the economy. The union owned enemy within driven by jealousy.....
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I agree Grant, It will be interesting to see how France get son now that they have a socialist president.
Yes Grant I think you're right about markets not being fooled. Both the German Dax and the FTSE have recovered almost all of their initial loses. Aparently a more sensible growth led approach advocated by the left of centre partys (or union led extreme socialists as you think of them), may not be such a bad idea, after two failed years from the Sarkozys and Camerons.
So who actually runs a country, the elected government, or the 'markets'. The country should be governed on behalf of the people, not on behalf of the minority who own it.
The people get more out of the market than they realise. This however is no excuse for living in the late 19th century in terms of what first past the post delivers. If I were a part loyalist in a constiuency which my party won easily I too would think my vote had not been counted proportionately.
You cannot have a one nation superstate with one currency with separate governments and separate fiscal policies. I hope this is the start of the end for the eu.