Equity markets tanked on Tuesday after Euro zone debt woes were unexpectedly resurrected. Greek Prime Minister George Papandreou called the latest “bailout plan” to a referendum, renewing fears of a default and sparking a sell-off across global financial markets. “As if last week’s half-baked euro summit deal hadn’t left enough questions unanswered about the policy response to deal with the crisis, [the referendum announcement] adds a further, very significant layer of uncertainty to the outlook,” said Chris Scicluna, an economist at Daiwa Capital Markets in London. The referendum move by the Greek Prime Minister spooked investors into worrying that the Euro zone would further destabilize as fears of a default resurfaced. Papandreou is looking to gain support for further austerity and economic liberalization measures, given the mounting public dissatisfaction with last weeks proposed three-pronged plan. Tensions spilled over onto Wall Street and investors were quick to take profits across all [...] Click here to read the original article on ETFdb.com. Related Posts: Daily ETF Roundup: XLF Surges On Europe Hopes, VXX Plunges On Market Strenght Daily ETF Roundup: XLF Surges On Euro Zone Hopes, VXX Sinks On Equity Surge August ETF Stats: Keeping The Winning Streak Alive (Just Barely) Daily ETF Roundup: VXX Sinks On German Court Ruling, XLF Surges On BAC Management Change Daily ETF Roundup: VXX Surges On Jobs Disaster, XLF Falls On More Lawsuits
Equity markets tanked on Tuesday after Euro zone debt woes were unexpectedly resurrected. Greek Prime Minister George Papandreou called the latest “bailout plan” to a referendum, renewing fears of a default and sparking a sell-off across global financial markets. “As if last week’s half-baked euro summit deal hadn’t left enough questions unanswered about the policy response to deal with the crisis, [the referendum announcement] adds a further, very significant layer of uncertainty to the outlook,” said Chris Scicluna, an economist at Daiwa Capital Markets in London. The referendum move by the Greek Prime Minister spooked investors into worrying that the Euro zone would further destabilize as fears of a default resurfaced. Papandreou is looking to gain support for further austerity and economic liberalization measures, given the mounting public dissatisfaction with last weeks proposed three-pronged plan. Tensions spilled over onto Wall Street and investors were quick to take profits across all [...]
Click here to read the original article on ETFdb.com.
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