Thursday, December 11, 2014
Greek stocks and bonds in sharp sell-off
December 11, 2014
Greek stocks and bonds suffered another sharp sell-off on Thursday amid mounting fears about the country’s future within the eurozone and mounting political uncertainty.
Greece’s stock market declined 7 per cent following the worst one day fall since the late 1980s this week. Benchmark 10-year government borrowing costs rose 50 basis points to yield 8.79 per cent.
The decline means the Athens bourse has shed nearly a fifth of its value this week after the announcement by Antonis Samaras, prime minister, of a snap presidential election later this month. If he fails to win sufficient support for his candidate, an early general election could follow which investors fear will bring to power the radical left Syriza party that has campaigned on an anti-austerity platform.
“Further volatility cannot be ruled out given the event risk over December,” said Peter Goves, an analyst at Citi.