Investors with open long positions over the weekend took a sigh of relief with the Eurozone averting its most imminent threat. Greeks as much as they might have been against austerity, decided in favour of being part of the single currency with the race now to form a coalition of pro bailout government. Equity markets are set for an unsurprising short term rally with financials looking to lead the way with the FTSE looking to open around 60 points higher.

It seems quite doubtful that anyone believes that the Eurozone is out of danger or stable until the new Greek government is formed and austerity measures implemented and with Italy and Portugal still hanging in the balance there is still a lot of work to be done. It wouldn’t be that surprising if today’s rally fades away before the end of the week and we are back here discussing the same subjects as last week.

Posted by Khurram Ali