Wednesday 20 June 2018


Euro, shares jump on Greek relief

London, June 18, 2012

Investors breathed a sigh of relief on Monday after Greece's election eased fears that Europe's currency bloc would break up, boosting shares and sending the euro to a one-month high.

Greek voters gave a slim majority to parties supporting the country's economic bailout programme but analysts said the rally in financial markets might be limited by concerns about the world economy and problems in Spain and other euro zone members.

US stock index futures and riskier commodities such as crude oil and copper also rose, while safe-haven assets like German bonds and gold fell after rallying last week on fears that the Greek vote could have unleashed financial turmoil.

'Even though the rally in risk may continue for a while, it is no time to get euphoric. The world economy is still in a bad shape and for Greece and others, formidable challenges still lay ahead,' said Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets.

The euro was up around 0.6 percent at $1.2710, having climbed as far as $1.2748, its highest level in a month. The US dollar index eased 0.3 percent.

The FTSE Eurofirst 300 index of top European shares jumped 1.1 percent to 1,004.20 points, while demand for bank shares saw the blue chip Euro STOXX 50 index advance by 1.3 percent. A rally across Asia earlier helped lift the MSCI world equity index 0.7 percent to 307.79.

Germany 10-year bond prices fell sending yields up as much as nine basis points to 1.54 percent, their highest level since mid-May. - Reuters

Tags: Greece | euro | Vote |


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