September 30, 2011
Wildcat strikes in Greece have prevented the country’s bureaucrats from finalising next year’s vital budget figures, potentially holding up this month’s release of sorely needed fiscal aid and capping an ignominious quarter for global markets.
Despite a tentative improvement in sentiment over the past week, mounting fears over a potential Greek default and the tepid pace of the global economic recovery led to one of the worst three months on record for financial markets.
The S&P 500 was on Friday set for a drop of 5.7 per cent in September and a decline of 12.9 per cent over the third quarter, its worst performance since the final three months of 2008.
The FTSE All World index was also set for its worst decline since the three months following Lehman Brothers’ collapse in September 2008. It entered official bear market territory in September, shedding more than a fifth from its high in May.