It is a textbook “buy the rumour sell the news” scenario in the markets, with the initial rally on Monday fading away with the realisation that even though the imminent disaster has been avoided, we are still in a worsening condition. Markets are apprehensive of the effects of anti-bailout Greek political party, Syriza, forming a strong opposition and opposing any further austerity measures.
European indexes had a choppy day with banks, leading the losses and sentiment worsened with sharply rising Spanish and Italian 10 year bond yields. The FTSE is looking to open slightly higher by 10 points today, but that in no way a sign of a confident risk on day.
Posted by Khurram Ali