Asia Markets Supportive of Greece Voters Backing Pro-bailout Party

in International Business

Asia Markets Supportive of Greece Voters Backing Pro-bailout Party

In the wake of Greece’s election on Sunday, Asia markets have rallied after support for pro-bailout parties.

The New Democracy party that has come top has supported the two bailout plans for Greece by the European Union (EU) and the International Monetary Fund (IMF). There were fears that the victory of the anti-bailout party, Syriza, would have meant Greece’s exit from the Eurozone.  There were concerns that such a move may spread contagion to other Eurozone countries and result in turmoil in the global economy.

The Greek voters are all in favor of staying in the Eurozone.

“There will be no more adventures. Greece’s place in Europe will not be put in doubt,” said Mr. Antonis Samaras, the leader of the New Democracy Party.

The bailouts granted to Greece have to meet the pre-conditions strict measures to these packages proposed by the EU and IMF. These measures include state spending cuts.

The election results had broader gains. Though the crisis in Greece has not been sorted out, the result of the elections had made some investors optimistic that it may have bottomed out.

“At some point in time, when the crisis does end, there will be a significant move of capital from across the world back into the EU,” said David Lennox of Fat Prophets.

The Euro rose almost 1% against the US dollar, hitting a one-month-high of $1.2748 in early Asian trade.

The price of oil also jumped, boosted by a weakening dollar and on hopes that consumer demand may pick up should stability return to the Eurozone.

The ratings agency Moody’s cut Spain’s credit rating to one notch above “junk” last Wednesday.

In the wake of Greece’s election on Sunday, Asia markets have rallied after support for pro-bailout parties.

The New Democracy party that has come top has supported the two bailout plans for Greece by the European Union (EU) and the International Monetary Fund (IMF). There were fears that the victory of the anti-bailout party, Syriza, would have meant Greece’s exit from the Eurozone.  There were concerns that such a move may spread contagion to other Eurozone countries and result in turmoil in the global economy.

The Greek voters are all in favor of staying in the Eurozone.

“There will be no more adventures. Greece’s place in Europe will not be put in doubt,” said Mr. Antonis Samaras, the leader of the New Democracy Party.

The bailouts granted to Greece have to meet the pre-conditions strict measures to these packages proposed by the EU and IMF. These measures include state spending cuts.

The election results had broader gains. Though the crisis in Greece has not been sorted out, the result of the elections had made some investors optimistic that it may have bottomed out.

“At some point in time, when the crisis does end, there will be a significant move of capital from across the world back into the EU,” said David Lennox of Fat Prophets.

The Euro rose almost 1% against the US dollar, hitting a one-month-high of $1.2748 in early Asian trade.

The price of oil also jumped, boosted by a weakening dollar and on hopes that consumer demand may pick up should stability return to the Eurozone.

The ratings agency Moody’s cut Spain’s credit rating to one notch above “junk” last Wednesday.



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