Publications
Partners
Johannesburg - On Friday European stock markets and the JSE
ended the week without any certainty as to whether Greece was likely to exit
the eurozone soon.
Global markets had gained ground after American consumer confidence exceeded investors’ expectations.
Earlier in the week the JSE's All Share [JSE:J203] index had
been pulled down by Greece’s uncertain political outlook and it closed the week
0.28% off at 34 038 points. The rand retreated to R8.12/dollar - its weakest
level in the past four months.
Throughout the week investors sought safe havens, allowing
the dollar to strengthen. The yield on German government bonds, which are also
looked upon as a sanctuary, also fell to record lows.
In last week’s national election Greece's established
political parties were thrashed by more radical parties which oppose austerity
measures.
In the past week Greek politicians took turns trying to
establish a coalition government. But by Friday afternoon investors started to
fear that the country might have to hold a second election.
Opinion polls among the Greeks during the week indicated
that the radical left coalition, Syriza, would make a clean sweep in a second
election. Syriza is strongly opposed to the austerity measures that the
European Union (EU) requires before further financial aid is given to Greece,
without which the country may have to leave the eurozone.
Although most Greeks would wish to retain the euro as
currency, they are highly dissatisfied with austerity measures which would
further aggravate a protracted Greek recession.
Meanwhile European banks announced on Friday that they would
be prepared for the eventuality of Greece leaving the eurozone. Christian
Clausen, president of the European Banking Federation, said that every bank in
Europe was making preparations for Greece’s possible exit from the eurozone. He
was convinced that it would not have a significant effect on the European
economy or the banks.
Europe had reached a stage where that could happen without a
major impact on the rest of Europe, he said.
- Sake24
For more business news in Afrikaans, go to Sake24.com.
