Greek election result boosts market
Greece’s New Democracy party’s victory in the country’s general election boosted the global market slightly as Greece continues to stay in the Euro.
Antonis Samaras narrowly won the election, taking 29.7% of the vote compared to Syriza’s 26.9% of the vote. Had the latter won the election, Greece would have bowed out of Euro and reverted back to their old currency, the Drachma, an act which the analysts had feared would adversely affect the stock markets worldwide.
Following the election results, Asian markets saw a rise in their stocks. Japanese Nikkei 225 index closed up 1.9% to 8,721.02 while Hong Kong’s Hang Seng rose 1% to 19,427.81. Chinese Shanghai Composite Index and the Shenzhen Composite Index added 0.4% to 2,316 and 1.1% to 964.71 respectively. Australia’s S&P/ASX200 also added 2% to 4,136.90 and South Korea’s Kospi climbed 1.8% at 1,891.71.
Meanwhile, the euro hit a one-month high against dollar, rising to $1.2748 and European markets all moved higher. The French Cac 40 and German Dax were up 1% on early trading and the UK FTSE 100 was up 0.7% in the early trading. Despite the rise in market early morning, European stock market saw their stock decline by midday, reminding Europe that the crisis is far from over.
Antonis Samaras, the leader of the new Democracy party, will now try to form a coalition with a pro-bailout party as they desperately try to overcome the Euro crisis.
Greece has been dependent on rescue loans to operate since May 2010 and is running in its fifth year of recession, with unemployment rate sky rocketing to 22% and tens of thousands of businesses shutting down.