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Pre-term election announcement caused fall of the Athenian stock exchange

07 September 2009 / 11:09:05  GRReporter
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The past week was very bad for the international stock exchanges. After a six month growth, the global indexes slowed up. In the US, Dow Jones closed with a loss of 0.58% and 9436.9 points. S&P 500 closed the week with a growth of 0.08% and 1016.13 points. Nasdaq increased with about 0.29% and closed with 2017.5 points. In Athens the stock exchange closed with 2518.7 points or a loss of 3.68%. part of the fault for this fall can be put on the news about the pre-term elections, announced by the governing New Democracy government. And the blame for the fall of the US stock exchange can be put on the unemployment rate, which increased from 9.4% to 9.7%.

According to many financial experts, some east European countries will get out of the crisis faster than Greece. The same experts were stunned by the fact that the government decided to announce pre-term election at a moment when Greece asked for a two year extension, in order to try and deal with the budget deficit. A problem quoted by many analyzers is the fact that the government could not agree on either one reform with a majority of at least one vote.

The western press comments on other problems of the Greek economy, like the $50 billion, which the country borrowed in order to fill the budget deficit hole and the fact that the tourist and ship sectors are shrinking. Also, the Greek statistical agency reported a car sale fall of about 19% for the period January-August, compared to the same period last year. The elections will take place on October 4 and research shows that New Democracy will lose with a difference of 4%-6%.

Other economy news - the anxiety about petrol demand lowered the price to $67.56 for barrel, after 10 days ago it reached its highest levels for 2009.


Tags: NewsEconomyStock news
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