Athens Stock Exchange experiences sever losses on Monday morning as development in Greece, Spain and Italy lead to decline of all European markets and the Euro. As of 02:21 pm, the General Index of ASE is at 588.59 units recording losses of -6.70%. The banking sector is at -8.90%. One hour earlier, at 01:32 pm,the General Index was at -7.21%.
It looks as if the markets are concerned about a possible negative report by the Troika, a report evaluating the fiscal adjustments of the bailout program. The representatives of IMF, EU and ECB are expected to arrive tomorrow, July 24th 2012 in Athens.
Over the weekend several foreign analysts revived the discussion about the perspective of a disorderly default and a Greek euro exit, following Germans’ and Greeks’ statements and EU “sources”. All this came after the decision of European Central Bank on Friday to stop accepting Greek bonds as collateral and German Foreign Minister Guido Westerwelle rejecting renegotiation of the Greek bailout. A main target of Samaras’ coalition government.
On Sunday, German weekly DER SPIEGEL cited the notorious and as always anonymous “EU-source” claiming the IMF said it would halt its rescue funds to Greece.
Also German newspaper Wirtschaftswoche published an interview with former Papandreou government Finance Minister (2009-2011) Giorgos Papaconstantinou was said among others, that “Samaras government may soon collapse amid conflict caused by his ND party’s domination of coalition. “I do not want to paint a black picture, but I am not optimistic” about the life expectancy of this government.
At the same time, German Economy Minister Philipp Roesler appeared to have “grave doubts” about whether Greece would be able to fulfill its obligations towards its lenders. “If no fulfillment of obligations, no bailout tranches should be released,” Roesler told German state broadcaster ARD.
Bloomberg reacted immediately with a post “Greece Back at Center of Euro Crisis as Exit Talk Surfaces and Spain Yields Soar”
Also interesting to read ” investors being advised that Grexit “just as much a positive for the markets as for the € itself” by Seeking Alpha .
With one voice, German media report that “Germany’s patience with Greece is over”.
How serious is the situation indeed? Last night KTG chatted with some co-Twitters:
Is it really serious or do big market boys need just their regular fix? I wonder what’ they’ll when and if Greece go bankrupt. They will have no their usual play-mobile and will have to search for a new one.