The shaking of the Greek economic and political system has reverberated almost throughout the entire world. After all European financial markets closed in the red yesterday, the negative trend continues today. The European financial index FTSEurofirst 300 continues to collapse and at 10:22 am Greek time it had dropped by 1% after yesterday's decline of 0.7%. The London FTSE 100 has also been following the negative trend and dropped by 1.1% as well as Xetra DAX in Frankfurt, which fell by 1.2%. The loss of CAC 40 in Paris is 0.8% at present. Even the Japanese Nikkei was unable to avoid investors’ fears and closed at a loss of 1.1%. After the Athens Stock Exchange had closed on Tuesday with the lowest turnover reached in the last twenty years, shortly before 11 am on Wednesday the main index noted a slight increase of 0.66%. "We expect a weak start for the domestic market," Proton Bank stated in the morning.
Bill Gross, who is co-founder and investment director of PIMCO (Pacific Investment Management Co) warns investors to keep away from investing in eurozone countries’ foreign debts. However, Greek financial analysts estimate that investors still find risky the debts of the countries of the European periphery, but not in the entire euro area. Five countries are on the edge of the blade, with Greece taking the lead. The interest on government loans to Greece reached an incredible 27.68%. Portugal could borrow from the capital market at 11.4% and Irish bonds are worth 7.56%. Unlike the first three countries, Spain and Italy have not yet received rescue packages from Europe and the International Monetary Fund, but pay respectively 6.35% and 6.02% to be credited by the free market.
In general, the second election period in Greece, which will last about a month, is expected to further collapse the Athens Stock Exchange. New and negative effects on international markets are expected too. Europe is starting to lose patience and Italian Minister of Industry Korando Passera stated in the morning show of a local television channel, quoted by Naftemporiki, "The euro may continue to exist without Greece and it is a fact." He stressed that Europe cannot solve the internal political problems in Greece and its separation from the monetary union will not be as tangible as the possible exit of Italy would be.
The Athens Stock Exchange closed again with a decline of 1.33%. The main stock index closed at 555.42 basis points and the turnover was 49.05 million euro. Banks are taking the greatest burden of uncertainty as on Wednesday they again lost over 7% of their value. Telecommunications companies lost 15.62% and commercial companies - 14.07%. The high-capitalization stocks are those of Coca Cola 3E with a jump of 6.08%, dairy products Vlahiko with 3.9% and Titanium with 1.07%.